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If seems like the basic idea of the 'YEAR' field is determined by the 'PAY ELEMENT' field begins with "FY". If it does begin with "FY", take the first 4 characters. When it does not, should you take the year from the previous row? What if the first row of 'PAY ELEMENT' doesn't begin with "FY"?
Anyways, I've attached a quick example using a Multi-Row Formula tool.