Retained Earnings Roll Forward (GAAP vs. STAT)

Does anyone have any suggestions on how to set Closing Rules, so that you are able to run separate Retained Earnings roll forward, one for GAAP entries, and the other for Statutory Adjustments, with the Book Code field being your point to differentiate?
I have set a chartfield rule in our Clossing rules to capture only Book Code entries for GAAP, but when running the RE Roll Forward in testing, both the GAAP and Stat entries are being captured in the Roll Forward.
Appreciate if anyone has any suggestions on how you have approached completing separate Roll Forwards for GAAP vs. Stat.
Thanks.

We don't roll it into retained earnings. In fact, you cannot roll a balance sheet account into retained earnings. We just report that account in the same financial statement node as the retained earnings account is in.

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Why do we need retained earnings account in income statement?

hi,
as far as i am concerned we need a retained earnings account only in a balance sheet statement. however i dont understand why do we need a retained earnings account in the income statement. can someone explain?

Hi
The account nothing but contains the accumulated profits which are divisible to the shareholders carry forward from the P&L account.
we define Retained earnings a/c in OB53.
Most companies use one retained earnings account. For this reason, X can be used as the key.
In the chart of accounts you enter X in the P+L statement account type field, and for account determination you enter the retained earnings account under the key X
assign points if useful

Creation of retained earnings statement in Financial Statement Version-OB58

Hi Gurus,
I am facing one problem as i didnot prepare the reports till now.
One financial statement version has created for Balance sheet and P&L account.they asked me to extended that same report by adding the Statement of Retained earnings in the same financial statement version.
How to proceed for this.plz help me.it would be a great help for me.will assign points...
Regards
Sap Guru

hi sapguru,
please cheek your mail and assign points.

Retained earnings forwarded to blank business area

Hello experts,
My client wants to get the retained earnings account business area wise. Presently, the retained earnings when forwarded to the next financial year is being captured to the blank business area instead of the correct business areas. My client has got 3 business area. They are 1000,2000 and 3000...Any suggestions could be very helpful..
Regards,
Prabhu

Hello Prabhu,
Sorry for the delayed response.
It sounds like your client is using Business area only within BSEG level and not in New GL level or they do not activate New GL ledger, even just a leading ledger 0L?
Please find out, technically, if your client desire is to have business area populated from CF amount into BSEG?
Kind regards
taro

Retained earnings account

Hi,
Can we maintain retained earnings accounts as open item management account?
our client has changed the status to Open item management account recently, due to this reason he is unable to do year ending carryforward through F.16. They are getting error analsys that change the status to without open item management.
treat this issue on priority ...
Thanks & Regards,
Prasad

Hello Prasad,
Retained earnings account is balance sheet account. At the closing of fiscal year, we need to carry forward balances of P&L accounts to retained earnings account. We have to create Retained earnings account at IMG level. Profit or Loss is carried forward to this account at the end of the year. Normally, companies use one retained earnings account. For this reason, X can be used as the key. In the chart of accounts you enter X in the P+L statement account type field.
Have you done any time year end closing functionally?
What we will be doing is drawing the "P & L account" transferring all balances in Rev & Exp to "P & L acc".
This P & L account in SAP is widely called as retained earnings account. At the end of the period, all your Rev & Exp are posted to this account which is a Balance sheet Item. This you are identifying as Retained earnings account type X and assigning a GL account. When you create this as a GL account system understands that this is Retained earnings account.
Profits of the organization are always Liability. Losses are Assets. As profits form part of "share holders funds".
You assign this retained earnings account in your financial statement version in such a way if the balance is credit in the liability side and if the balance id Dr then asset side
Thanks
Para

2 retained earnings account to be maintained

Hi
Our client requirement is we have to maintain 2 retained earning account one is for Previous year retained earnings account and another is for current year.
How to do it
and how the value will flow from the current retained earnings account to previous year retained account

Hello,
Retained earnings account is balance sheet account. At the closing of fiscal year, we need to carry forward balances of P&L accounts to retained earnings account. We have to create Retained earnings account at IMG level. Profit or Loss is carried forward to this account at the end of the year. Normally, companies use one retained earnings account. For this reason, X can be used as the key. In the chart of accounts you enter X in the P+L statement account type field. If you want you can use more than one REA in ur co code.
Have you done any time year end closing functionally?
What we will be doing is drawing the "P & L account" transferring all balances in Rev & Exp to "P & L acc".
This P & L account in SAP is widely called as retained earnings account. At the end of the period, all your Rev & Exp are posted to this account which is a Balance sheet Item. This you are identifying as Retained earnings account type X and assigning a GL account. When you create this as a GL account system understands that this is Retained earnings account.
Profits of the organization are always Liability. Losses are Assets. As profits form part of "share holders funds".
You assign this retained earnings account in your financial statement version in such a way if the balance is credit in the liability side and if the balance is debit then asset side
Thanks
Para

Retained Earnings Statement (Financial Statement Version) Issues

1. If I post any thing, will it update Retained earnings account automatically or can I create any formula?
2. The requirement is  how the Retained Earnings Beginning of year will update from P&L statement?
3. How the Retained Earnings P+L result will update
Note: If you tell the solutions for 2 & 3, then my problem will get resolved
Regards
Sap Guru

Hi,
At the year end, whenever the balance carryforward is done, it will set the Retained Earnings G/L to the net balance of all Profit and Loss G/L Accounts for the fiscal year. Thereby when the new year is opened all the P&L G/L Accounts will have zero balance, while the Retained Earning will show the balance carried forward as the net value.
So, as and when the balance carryforward is done, the retained earnings get updated. Also, once you have done the balance carryforward to any financial year, even if you post again in the previous year, the retained earnings will keep getting updated automatically without executing the balance carryforward again for the same fiscal year.
Ramanand

Retained Earnings Statement Format(Financial Statement Version)

Dear Friends,
Since 2 days i am requesting you regarding Retained Earnings Statement Format(Financial Statement Version)
Please send me the fromat for Retained Earnings Statement Format(Financial Statement Version)
It would be a great help for me and points will be assigned...
Regards
Sap Guru
[email protected]

hi sapguru,
please cheek your mail and assign points.

PCA Balance Carry Forward - Retained Earnings

In PCA, balance carryforward does 1. Zero's out balances in accounts with transaction types & books the net of each account to the beginning balance Transaction Type.
2. Zero's out all P&L accounts and records earnings to retained earnings account for each profit center except that it books retained earnings without Transaction Type and without Partner Profit Center. It does not do for any of the other items.
Can someone please expain why it is behaving like that? or is there a solution to get transaction type and Partner profit center populated with retained earnings account.

Hi Nandini,
We also have the same problem
Can you please guide us to resolve the issue
Warm regards
Anand

Retained Earnings Account balance not carry forwarded to next year

Hi,
We have problem in Retained Earnings Account Balance C/F to next year
example:
G/L Account closing balance in 2008 - 1000.00 (as per FS10N) after c/f balances to 2009
G/L Account Opening balance in 2009 - 850 (as per FS10N) (there is a difference 150.00)
If we double click on Cumulative balace of 850 it will give us - 1000.00 and if we see in report : FBL3N it will show correct balance. Only FS10N is not showing correct balance.
Can you please let us know what will be the reason ?
Thanks
Ravi

Hi Ravi,
We are using 4.6C version and last few years there was no problem and we have other company codes which are showing correct balance. But only one company code this difference is coming.
If we double click the FS10N report opening balace it will give us the correct balance. But in display there is showing less amount.
Thanks

Appopriation of retained earnings

Hi,
Can anybody help me out to understand how system,
behaves differently for ARE in balance sheet and ARE in
income statement.?
is it mandatory ,that if I selected ARE in income statement
then all my ARE accounts like group adjustments and
minority adjustments should also be income statement
accounts.?
Can I say that I can work with subsequent consolidation
without activating ARE itself ?

The appropriation of retained earnings can either be integrated on the balance sheet or be stated as an addendum to the income statement.
In the former case, a FS item at the end of the income statement discloses the transfer of the annual net income to the balance sheet.
In the latter case, the transfer item is located at the end of the retained earnings statement and states the retained earnings.
Which method is used affects the retained earnings item on the balance sheet as well as the balance to be carried forward.
For subsequent consolidation in Cons of Investment you should indicate an item accourding to the ARE setting in the Cons Area. Hence if Balance Sheet use Balance Sheet item, if Income Statement us Income Statement item.
ARE for COI must be configured for Net Income. Bonus Payments and Distribution of Dividends is optional.

Why do we need more than one retained earnings accounts & what is the use?

Hi FI Experts,
Why do we need more than one retained earnings accounts, what is the precise use of two?
I know the retained earnings account is used to carry forward the balances during the year end to the balance sheet and there by making the p&L A/cs balances as zero.
I guess the second one is used for different valueations for example as depreciation accounts for different valuations will have different retained earnings accounts.
Kindly correct me if I am wrong and eloborate on the use having more than one retained earnings accounts.
with regards
Ramesh Y

Hi,
Well, separate retained earnings accounts are used for parallel financial reporting, it means when you need to report in accordance with, for example, local GAAP and IFRS or US GAAP at the same time. Several retained earnings accounts are necessary when the company chooses account based approach for parallel reporting. (GL accounts are broken down into several groups, for example you use different accounts for IFRS valuation, for local GAAP and they are also shared accounts common for both principles.)
m.

EC-CS retained reanings roll

We changed a company from being a flexibale upload to EC-CS to uploading to FI. In this process we changed the consolidation unit master data from flexible upload to roll up. This change was made in Dec. of 2010 but our problem was not noticed until Jan 2011.
The problem is lthat the account for the current year earnings and the earnings account on the income section show transaction currency, local currency but no group currency with all the current month income change going to the translation adjustment 01. The company is a Mexico currency for local currency and USD for group.
When we carried into year 2011 we noticed the problem because the currency translation was getting the wrong value for Ref value (the value has not changed since we changed the upload methode) which made it out of balance and it did a rounding error for all the revenue from prior year.
I have been going over all the configuration and master data and do not see any differences from other consolidation units that are working

Ok thanks for the response I will try again.
We changed a consolidation unit from being flexible upload to ec-cs to upload to FI and rollup to EC-CS.After doing this the accounts used in the RE/Item substitution process started to react differently.
What it shows for the current year retained earnings on the balance sheet is
   Unit   Item        C Subitem    PU     PL Aptn   Tran    DT C Profit C     TC        TC value         LC          LC value          GC    value
1030   330003                     00                                           9100       MXN 12,592,547.16 MXN 12,592,547.16                      0.00
1030   330003                     00                         1                9100       MXN                  0.00 MXN                  0.00        1,014,819.24
1030                                                                                MXN 12,592,547.16 MXN 12,592,547.16        1,014,819.24
The income satement side works the same. It appears to be rolling the transaction currency and local currency but not the group currency. On other consolidation units it shows the usd amount on the first line and the translation amount would be what shows in the income statemnt accounts. What is showing here looks to be a balancing entry.
Edited by: Dougs1 on Mar 16, 2011 8:58 PM
The spacing does not come out on the display
If I run CX34 for the two accounts used in the item substitution retained earnings one used for the balance sheet and the other for the income statement. I can drill down on the uploaded data posting level 00 or blank to get the monthly data it shows an amount for transaction currency, local currency and group currency for every month up to the change. After the change the group currency is zero.
Edited by: Dougs1 on Mar 16, 2011 9:47 PM

Retained Earnings account type

Hi guys,
While creating a retained earnings account, we have a field called P&L statement account type which is given as X or Y. What is the meaning of this?
Do we assign this X or Y somewhere to the Pand L account.
Thanks
srik.

HI,
With the P&L statement account type, you determine the retained earnings account for each P&L account. The retained earnings account is used during year-end closing to calculate the company's result.
If you are creating a P&L account, you must make an entry here.
Dependencies
If you determine during a fiscal year that you mistakenly designated a G/L account as a P&L account instead of a balance sheet account, you will need to change its master record. You will then have to rerun program SAPF011 to correct the balances of the G/L accounts carried forward
Means will transfer the P& L account balance to balance sheet.
Reg
Madhu M

Retained Earnings in BPC

Hi All,
Can any one help me in the Area of Retained Earnings..Below are my questions:
1.How is Retained Earnings calculated in BPC? Is it a calculated figure or carried forward figure?
2. When it is calulated?
3.How it is carried forward from P&L account to B/S..Through any Business Rule or Script Logic.If so what are those rules/logic
Do you have any document on the same that could help to understant the above mentioned areas on Retained Earnings.
Thanks,
Shankar.v

Hi,
By Using the Copy Opening & Carry forward Function, You Can achieve this.
For example, if you use the dimension flow in the data model when closing balances of one year are rolled forward into the opening balances of the following year, the balance to be rolled forward will be found under flow type Closing, but
will need to be posted in the new year under flow type Opening. As well accounts may also change.
For example, the account Retained earnings current year income, when rolled forward may in the new year be stored under an alternate account Retained Earnings from prior period. Accordingly, the ability must also exist to change accounts during roll-forward. The Business Rules Tables in this case are designed to define what values need to be rolled forward (i.e. accounts and flows and to what accounts and flows these values should be posted in the new year). The carry-forward function can be applicable to both Financial and Legal Consolidation Applications.
Carry-forward rules give you the ability to generate the Opening Balance of any category based on two main properties: Flow Type in the Account dimension Opening category in the Category dimension This procedure can be used to initialize a new reporting period with the closing balances of the last period from the previous year into the opening balances of the current period. In a Legal Consolidation application, such balances are usually identified as members of the FLOW dimension. In simpler applications, however, it is also possible to store them as additional accounts in the ACCOUNT dimension.
Balance Carry Forward Business Rules
1. To configure the business rules, go to the Admin Console, and fill in the business rule based on the data below:
For example In row 1, roll the entire balance sheet (closing flow) from 2009.DEC to 2010.JAN (opening flow). Then, in lines 2 and 3, post the annual net income in 390000009( Source Account) to the prior year retained earnings account 25712000(Destination Account) and flow 'F_ARES'.
Regards
CSM Reddy

Retained Earnings Roll Forward (GAAP vs. STAT)

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