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The standard income 12 period report in Sage 50 displays a breakdown of the current fiscal year by month, from period 1 to period 12. However, it only allows reporting for the current period without an option to select a custom date range, making it impossible to run reports for closed years. To enable this functionality, users can click the save button to rename the report, creating a custom financial statement. By doing so, the report name changes, and the custom version is added to the report list, allowing for more flexible reporting.