Manual posting to Retained Earnings & Reserves Account

Hello Experts,
Due to acquisition which was an assets sale, we have to adjust the reserves and retained earnings balance in our SAP ECC 5.0 version. My understanding is we can't post a manual posting to retained earnings account and wondering how can I achieve a set balance by making adjustments.
Any suggestions would be highly appreciated!
Thanks
Mohammed.

Hi:
SAP does not recommend manual posting to RE Account . In order to have effects in RE please open the previous fiscal year (if the entry or an adjustment pertains to closed fiscal year). Post the normal entry which should have been passed under normal circumstances. Please note that entry should be posted in special period of closed fiscal year. Having posted the entry execute FAGLGVTR , this will now carry forward an adjusted RE balance.
Hope this will help you.
Regards

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Year wise GL account retained earnings

Hi Friends,
My client has ECC5 version. This is 2nd year of closing (march 09). Now he wants 2008 year profit to be posted to Retained Earnings 2008 GL account.Like wise he is asking me to maintain year wise retained accounts.
Last year ie 2007, in OB53, assigned 2007 retained earnings. Now they have created 2008 retained earnings gl and they are asking me to assign in OB53. They are expecting that when they do carry forward / year end process, 2008 year profit will go to 2008 retained earnings account.
I am doubt that will it happen like that? If i change as them and do, what will be the consequences?
I never come accross these situation... Please help me.
Thanks & Regards
Srimedha

??? who introduced SAP there and educted user???
Check transaction FAGLGVTR for carryforward.
BR
Hein

Retained Earnings Error

Hi Guys,
I have a situation which is like this.
There has been a wrong entry in the system during 2001 and we dont know where it came from. It is now included in the retained earnings account.
How can i adjust my retained earnings account?
Thanks,
Srikanth.

Hi
If your retained earnings GL account not accepts to post manually, create a new GL account called "Prior period adjustment account" and do adjustments. This standard accounting practice.
Cheers
Srinivas

Posting mannual entries to retained earnings account

Hi Friends,
The scenario is : client is passing a mannual jv like this:
Retained earnings A/c                                 Debit   $100 (Say)
Other Comprehensive A/c (liability group)      Credit $100
They are telling that this entry is as per USGAAP. But as per best practices, we should not touch retained earnings account.
1. Please help me is there any other way of passing the above entry with out touching Retained
     earnings a/c
2. Because of this entry, system is giving error in EC-CS consolidation.
   Error Description is : There is a difference in Retained earnings as per P&L and Balance sheet.
please help me in solving the above two issues.
I am very very thankful, if you help me in this.
Thanks & Regards
Srimedha

Hello,
the retained earnings is usally calculated in EC-CS: it is the difference of the Active and passive side of the balance sheet.
See note 1305618 on this issue
Cheers,
David

Passing manual journal adjustment to retained earnings is possible?

Hi all
Please let me know do manual journal adjustment to Retained earning account is possible? Will this journal entry will create an issue while open the period of next year?
User wish to pass adjustment b/w retained earnings & owners equity account.
Please advice. Thanks
Regards
Sridevi

Hi:
SAP does not recommend manual posting to RE Account . In order to have effects in RE please open the previous fiscal year (if the entry or an adjustment pertains to closed fiscal year). Post the normal entry which should have been passed under normal circumstances. Please note that entry should be posted in special period of closed fiscal year. Having posted the entry execute FAGLGVTR , this will now carry forward an adjusted RE balance.
Hope this will help you.
Regards

What is the using of retained earnings account

HI
In the above , please reply the answer as early as possible
with regards
srinivas

this question is poste in wronf foroum it sould be in FI not in MM
from www.investopedia.com
retained earnings account
The percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders' equity on the balance sheet.
The formula calculates retained earnings by adding net income to (or subtracting any net losses from) beginning retained earnings and subtracting any dividends paid to shareholders:
Also known as the "retention ratio" or "retained surplus".
In most cases, companies retain their earnings in order to invest them into areas where the company can create growth opportunities, such as buying new machinery or spending the money on more research and development.
Should a net loss be greater than beginning retained earnings, retained earnings can become negative, creating a deficit.
The retained earnings general ledger account is adjusted every time a journal entry is made to an income or expense account.
hope this helps

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

P&L acc should not hit retained earnings account upon exe Bal Carry Forwar

Hi Friends,
As per business requirement I created two Depreciation expense accounts, only Book Dep account should hit retained earnings whereas other special dep account should not hit. Since both accounts are P&L they are picking upon executing Balance carry forwad.
Special Dep area is created to depreciate the complete asset in the year of purchase to help the org to allocate it to different Cost centers for funding request. As such these special dep accounts are out of scope for FSV so there is no impact on Bal Sheet,however upon exec FAGLGVTR full dep posted on these accounts are carried forward to next year along with true dep.
Please provide any suggestions that help to avoid some of the PL acc carry forard to retained earnings account. I am thinking of creating separate chart of account for these accounts but this consume lot of time for testing all the scenarios.
Thanks in advance.
Venkat

Hi Madhu,
Here is the scenario.
APC of all acquisitions are allocated, in the year of acquisition, among several cost centers using statistical key figure (Work hours). To satisfy this requirement, a second depreciation area (Special) will be created. In the second depreciation area, all assets (regardless of asset class) will be depreciated fully in the year (month) of acquisition u2013 (the same depreciation key as low value asset). The value in the second depreciation area will flow to controlling.
This full depreciation is not even consider in financial reporting as the number range of these dep exp accounts are out of range in FSV. The main purpose is to allocate full depreciation among CC in advance for funding request.
Thank you,
With Regards,
Venkat
Edited by: Venkat Reddy Yedulla on Jun 7, 2010 6:22 PM

Retained Earnings Account balance

Hi,
We have a situation where the the Retained Earnings account in FS10n and FBL3n are different whereby i agree that since there is no posting for the carried forward Profit and loss there will be no entry passed. is this usual if so i can i analyse the the retained earnings account. please clarify
Beat Regards,
Roville

balance in retained earnings account means carryforward net balance of P&L gl accounts from last year.
Ex. You are carryforward all the balances from the year 2008 to Year 2009. All the P&L account balances of 2008 will be transferred to Retained earnings account. and all the Balance sheet gl balances will be transferred as-it-is to same gl account.
You can analyse the Retained earnings account balances or line items in table level.

Retained earnings account- differences between F.01, FS10N, FBL3N

Hi Sap Gurus
Maybe someone can help me. When Iu2019m trying to control the amounts for the retained earnings account comparing the FS10N, FS10N drilldown, FBL3N, and F.01 they give me all different values.
I understand that the differences between the FS10N and FBL3N can be related to the carryfowrd process.
But, okey. Why when Iu2019m double click on the FS10N report the system shows a different value from the FBL3N? Another problem is when I compare the amount from FS10N and F.01 for the same retained earnings account, the system show complete different values, how I can verify the amounts for control and audit process?
Regards
Gabriela

I cannot speak on F.01 but between FS10N and FBL3N and FS10N drill down, they should equal in grand total. Keep in mind that FS10N GL Account balance display is based on one fiscal year display but the cumulative balance should be all activity from day 1 that has been carried forward.
Try running FS10N for the last fiscal year possible. If carryforward for the retained earnings accounts have been performed for each year, then the ending figure in the cumulative balance column will equal the same total ending balance you get when you execute FBL3N GL Line item display for the same retained earnings account (providing you select "All items" and don't include in posting date restrictions or any others on the selection screen).
Using FS10N for each fiscal year, you can check to to see if the beginning cumulative balance is the same as the previous years ending cumulative balance. If not then they may be a carryforward issue.

Retained earnings account - urgent

Hi Friends,
I got a problem. Need your help. We run Balance carryforward (F.16) on last month (My fiscal year ends on 31.07.07). But after posting some transactions, today we rerun this F.16. It should show the new balance in Retained earnings account. When I run this and check in log, it is showing updated value. But its not updated in GL account. I mean the value is not updated in GL account. It is showing old value only. Please can any one help me? I am in ECC6.0.
My old value is more than new value.
Thanks in advance

Hi,
It seems You are executing the program with Test Run Option. If you want that the program updated the value in GL account you must unmark Test Run Option. You can rerun this program so many times as you want.
On the other hand you has the new version of that program (I think in 5.0 version)
Transaction: FAGLGVTR - Balance Carryforward. I think is better than old transaction.
Thanks,
Francesc

Transfer of Retained Earnings to Proprietor/Partner Capital Account

Dear all,
One of my client is a Partnership Firm. After year end closure activities Profit/Loss is calculated in Retained earning Account.
Actually this Profit /Loss has to be apportioned to respective Partners capital Account.
Pls let me know the procedure for transfer from Retained earning Account .
Thanks & Regards
Veena Kunthe

Sorry , SAP doesnt support auto apportionment. So the alternative is to manually pass this as a manual journal using FB50. But actually u can create a simple template to apportion it using percentage. U create an acct assignment model FKMT and assign the normal entries as you would have done evry year or month but this time create it as a template. After its created, you can call up this model in FB01 and click at Acct model option. So everytime you just need to fill up the amount in the retained earnings and the system can allocate to the correct % to the respective accts.
PS Remember to check the checkbox for equivalence to in the header of FKMT

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

Manual posting to reconciliation account under asset account group

We need to maintain Asset Group (G007) to allow manual input in order to post a period end-closing adjustment as required by our external auditors. ( i.e in the reconciliation account under the asset account group, we need to check the 'allow manual input' option so as to do posting to this account manually).
Under normal circumstances, the posting should have been from WBS Element, to AUC, then to Fixed Assets. However, since all the procedures have been completed until Depreciation Run, we have no option but to input this manually.
Similar Recon accounts which allow manual inputs are Accounts Receivable (GL Code 115000) and Accounts Payable (GL 210000).
My intention is to have this captured in the system as of Dec. 31, 2008; Reversed the same transaction on 01-Jan-09 and process it normally as mentioned above.
Valuable assistance will be highly appreciated.
Best regards,

You can make manual postings on the asset reconciliation account with the transaction ABF1
Use PK 70 or 75 , G/L account and transaction type 100.
The result is that asset accounting is no longer in line with your G/L accounts.
Put this transaction in your authorization make the posting and reverse and take the transaction out off the authorization!

FS10N Opening balance difference (Retained Earnings Account)

Hi,
We are getting opeing balance difference in FS10N balances from 2007 to 2008 (retained earnings accounts)
1. We have carry forward the 2007 balances to 2008 through T.Code : F.16
2. We are getting difference in 4 company codes.
3. But there is no difference in T.Code: FBL3N
Company      2008                            2007
1000     20,457,623.98     20,635,622.78
Difference     =     177,998.80
1001     49,091,242.21     48,913,243.41
Difference     =     177,998.80
1002     394,867,485.91-     396,028,401.55-
Difference     =1160915.64
1003     2,556,851.66-     1,395,936.02-
Difference     =1160915.64
Can you please let us know why this difference is comming ?
Thanks
Madhusudan

If you are using ECC use T. code FAGLGVTR - Balance Carryforward (New)
F.07 - Balance Carryforward for Vendor/customers
then only it shows the correct picture.
when FBL5N is line item report it is no way relavent to balance carry.
this may solve your problem
assign points if it help

Manual posting to Retained Earnings & Reserves Account

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