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The standard income 12 period report in Sage 50 breaks down the current fiscal year by month, from period 1 to period 12. However, it only allows reporting for the current period. To view a previous fiscal year, one must change the current period back but cannot access closed years. By clicking the save button while viewing the report and renaming it, users can create a custom financial statement, enabling access to the report under a new name. This customization allows for easier tracking and analysis of financial data over different periods.