Year dependent means it is specific to that particular year.
Year independent means means applicable for all the years.
Say for example:
You have created a FYV which is year dependent YZ and you define periods for that particular fiscal year only.
like Jan1st to Feb 2nd period 1 in the fiscal year 2009
Feb 3rd to March 2nd ...period 2 and so on.
and again you need to define periods for the year 2010 also.
But where as if you use V3 which is year independent which will always be from April 1st to March 31st regardless of the fiscal years.
Year independent- If your month end /year end is as per calendar month / year , i.e. 31st jan , 28 feb -
31st dec, then it is year independent.
Year dependent - If your month /year end is different than calaneder month/year , i.e. weekly, 15th jan to 14th feb ,every friday is the month end etc.
Year Dependent: the financial year is same as calendar year. Starting from 1st Jan to 31st Dec (where posting periods and the calendar months are equal)
Year Independent: the financial year is different from calendar year Starting from 1st April to 31st March (where the posting period months are not equal to calendar year months)