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How to Define Retained Earnings Account SAP

This tutorial guides you how to define retained earnings account in SAP FI.

Retained Earning Account :– Account balances are carried forwarded from one fiscal year to the next fiscal year by using the SAP standard carry forward program. Retained earnings account is assigned to each P&L account by specifying a P&L statement account type in the chart of accounts (COA).Each Profit & Loss account is assigned to a Retained Earnings Accounts by key

For automatically carry forward the balance by the system to the retained earnings accounts, you can define one or more P&L statement account types per COA and assign them to retained earnings account.

 

Steps to Define Retained Earning Account :-

T Code for define retained earning account :- OB53

IMG Menu Path :- IMG > IMG –> Financial Accounting –> General Ledger Accounting –> GL Accounts –> Master Data–> Preparations –> Define Retained Earnings Account

Step 1 :-

Enter Transaction Code SPRO in the SAP command field and press enter

spro5

 

Step 2 :- Select SAP Reference IMG

sapfi1

 

Step 3 :- Follow the IMG menu path for define retained earnings account

How to Define Retained Earnings Account SAP path

Step 4 :-

Next Enter Chart of Accounts key that you wants to define retained earning account for COA and press enter

How to Define Retained Earnings Account SAP

Step 5 :-

Update the following data  and press enter

P&L Statement acct type :- X

Account :-  Enter account 120000

How to Define Retained Earnings Account SAP

 

We get a warning message account 120000 not created in chart of accounts ADAR

How to Define Retained Earnings Account SAP

 

Step 6 :- Ignore the warning the message press enter. Press enter once again and save the configured retained earnings account.

Thus Retained Earnings Account is successfully configured in SAP