sap FI- Retain Earning Account

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

accounts.

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

fiscal year.

Additional account assignments are transferred.

There are no prerequisites for carrying forward balance sheet and customer and vendor

accounts.

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Transaction currencies are no longer applicable and the profit and loss accounts are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

 

Or 

 

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)