CARRYING FORWARD BALANCES
This process involves carrying forward account balances into the new fiscal year. The
balance to be carried forward is shown in the account balance display. To carry forward
balances, you can use separate program for G/L accounts, and for Customer and vendor
The balance carry forward is executed as follows :
Balance Sheet and Customer and Vendor Accounts
The balances on the balance sheet accounts are simply carried forward into the new
Additional account assignments are transferred.
There are no prerequisites for carrying forward balance sheet and customer and vendor
Profit and Loss Accounts
Profit and loss accounts are carried forward to retained earnings accounts. The
balances of the profit and loss accounts are set to 0.
Additional account assignments are not transferred
Transaction currencies are no longer applicable and the profit and loss accounts are
summarized in local currency.
For this you need to specify a profit and loss account type in the master record of every
profit and loss account. This is a key, under which you define a
retained earnings account for each chart of accounts.
You must define your retained earnings account.
Most companies use only one retained earnings account. But you can use more than one.
1.Define Retained Earnings Account
13.1. First and Last screen (Retained Earning Account)
Menu Path : IMG Menuà Financial Accounting à General Ledger
Accounting à G/L Accounts à Master Records à Preparations à
Define Retained Earnings Account
T-Code : OB53
Menu Path : IMG Menuà Financial AccountingàGeneral Ledger
Accountingà Business TransactionsàClosingàCarrying
ForwardàDefine Retained Earnings Accounts.
T-Code : OB53
Fields of this Screen
a) P&L statmt (col) : X
(Enter this code for retained earnings account. If you are creating multiple retained earning account, you need to enter different keys such as Y or Z and different GL Codes)
b) Account (col) : X (The account Number should be last of the P & and Loss group)