OB53 and account type X in FS00

Question

Hi,
I would like to have better understanding on the relation between these 2 settings:
Let say, my system's setting is as follows:
OB53: X - GL 99999
FS00: GL 89999 (P/L GL) marked with account type X
Other GL's, like Bank: 11300, Expenses (Water): 416300
Initially, I started up my business with capital EUR200
Let say, my current year transaction is payment of water EUR100 (one expense), and does not have other revenue / expense.
Therefore, my current year Profit and loss account should be, loss of EUR100.
My balance sheet in EUR, should be as follows:
Asset:
Bank: 100
Liability:
Capital: 200
Loss: (100) - retained earning
My question, how should the system make use of GL99999 and GL89999?
Anything to do with Tcode: FAGLGVTR?
Thanks in advance.

Answer 1

Hi,
In OB53, we have to assign Retained Earnings A/c. It is nothing but Profit and Loss A/c in general terms.
In your example, you have given GL A/c number 99999 in OB53. That account is called Retained Earnings A/c or Profit and Loss A/c.
After assignment in OB53, go to go FS000 and create the Retained GL A/c for the same number which you have given in OB53 i.e. GL A/c 99999.
While creating Retained Earnings A/c in FS00, select your account group (Its may be Reserves and Surplus group) and select Balance Sheet a/c.
At the time of running F.16, all types of u201CP&L Statement Accountsu201D (This indicator should be selected at the time of creation of GL Accounts in FS00) balances should be carried forward to the Retained Earnings A/c which you have given in OB53.
Retained Earnings A/c shows the net results i.e. either profit or loss. In your case, it shows a loss of Rs.100.
Note: We need not post anything manually to Retained Earnings A/c. It will automatically be posted at the time of running F.16.
Difference between T codes:  F.16 and FAGLGVTR.
We can use T code: F.16 when we are maintaining GL Accounts in ordinary Financial Accounting ---> General Ledger Accounting.
We can use T code: FAGLGVTR when we are maintaining GL Accounts in New Format. That is Financial Accounting (New) -
> General Ledger Accounting (New).
Hope this helps you.
Regards,
Kannusamy S