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
Step 2 :- Select SAP Reference IMG
Step 3 :- Follow the IMG menu path for define retained earnings account
Step 4 :-
Next Enter Chart of Accounts key that you wants to define retained earning account for COA and press enter
Step 5 :-
Update the following data and press enter
P&L Statement acct type :- X
Account :- Enter account 120000
We get a warning message account 120000 not created in chart of accounts ADAR
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