What must always be configured before using spreads?

Before using spreads in the context of financial analysis or management, the fiscal year must always be configured. The fiscal year is essential because it establishes the time period for financial reporting and analysis. Without an accurately set fiscal year, any spread calculations would be misaligned with the organization's financial reporting timelines, leading to confusion and potential inaccuracies in analysis.

The fiscal year defines how earnings, expenditures, and financial performance are viewed over a specific timeframe, which is particularly important when comparing data year-on-year or quarter-on-quarter. It provides a structured timeframe to analyze financial performance and make informed decisions.

In contrast, elements like the annual budget, document type, or loan agreement, although they play important roles in financial processes, do not directly impact the foundational setup needed specifically for using spreads. Spreads rely on precise temporal data, which is anchored in the correct fiscal year configuration.