Retained earnings/annual net income differ in B/S and I/S

When we run Cxcd, the above message appeared and i tried so many way and could not find a solutions to fix the problem
Please advise, you help greatly appreciated
Thank you
Bali

Hi Rick,
Are you able to solve this issue.
Right now we are facing the similar issue.
Retained earnings/annual net income differ in B/S and I/S
Could you please tell me how you overcome this issue..?
Thanks
Praisty

Similar Messages

*Consolidated Retained earning or Net Income calculation*

Hi.
I want to know how the Consolidated Retained earning or Net Income calculation will be done under BFC.
Is this will be done through Consolidation Rules? or Formulas?
Please Reply.
Thanks.
Sarvesh Nikumbh

I would create a formula in category scenario which calculates the retained earnings account out of summation of p&l accounts.
Cheers
Udo

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

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.

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

Dear Sap gurus,
Please clarify the following:
1) If all P & L a/cs. are transferred to Retained Earnings a/c. as configured, then we could finalise the B/s. Can we do this closing process, periodically say 'Monthly' to analyse Monthly Balance Sheet. If this process is done only at the year end i.e. transferring balances to Retained Earnings a/c. then how can we analyse monthly upto the period balance sheet?
2) If Tax depreciation area (15) posts difference of depreciation affecting P & L, then how this will be processed without effecting ADP A/c. Will it be a charge in P & L a/c affecting our Profits? Book Depreciation area (01) is understood well.
3) A Vendor document (Invoice) is entered in GBP, then the open item shows balance in Local currency say., USD. If the Vendor wants to pay him through GBP is it possible in SAP to pay so in Automatic Payment Process.
4) If Asset Revaluation would be posted in APC then where the second offsetting entry (CR.) would go whether to Revaluation Reserve, or Special Reserve? If none of these, will it affect ADP A/c. (accumulated depreciation a/c)? Can anyone explain this process.

Hi
Answer for your fist question is You cannot update your retained earnings account every month when you run f07 and f.16 at the end of the year then only it will update the retained earnings. You can run monthly balance sheet it will display profit/loss evry month.
Regards
Muralidhar
To say thanks reward points

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.

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

Net Income account in General Ledger

I have a requirement of finding out a period's (say June-00) Current Profit/loss(Income - Expenses) in GL.
I have enabled Average Balace Option in the Set of Books. I had specified a Net Income Account. Does Net Income account carry standard balances besides average balances? Is it equivalent to Profit / Loss figure for a period?
Any clarifications on this will be highly appreciated.
Thanks in advance
Can somebody

The net income account is defined a non-postable account to capture the net activity of all revenue and expense accounts. It stores the aggregate balances to compute the net income impact on the retained earnings average balances for any given period, quarter or year.
The primary difference between the non-postable net income account adn other balance sheet accounts, is that its balance does not roll forward when you open a new year. Instead, GL resets the account to zero when revenues and expenses are closed out to retained earnings at the end of the year.
You could query this account on line (Inquiry->Average) for the year end (Dec)to ensure that the defined net income account is resetting itself to zero.
<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by NRKMurthy:
I have a requirement of finding out a period's (say June-00) Current Profit/loss(Income - Expenses) in GL.
I have enabled Average Balace Option in the Set of Books. I had specified a Net Income Account. Does Net Income account carry standard balances besides average balances? Is it equivalent to Profit / Loss figure for a period?
Any clarifications on this will be highly appreciated.
Thanks in advance
Can somebody <HR></BLOCKQUOTE>
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EC-CS transaction CXCL "item substitution/calculation of retained earnings"

in EC-CS transaction CXCL "item substitution/calculation of retained earnings" is not updating group currency on a consolidation unit that was changed from flexible upload to rollup. It does update transaction and local currencies but not group. Does anyone have any ideas as to what could cause this.

We changed the unit from flexible upload to EC-CS to upload to FI. At this time we changed the unit masted data from flixible upload to rollup and added it to the rollup sets for GL25. We entered year to date numbers in FI for year to date november manually then did the first upload to FI and rollup to EC-CS for month of december which picks up current month. Prior to doing this when we uploaded to EC-CS and the ran CXCL "item substitution/calculation of retained earnings" it would update the two accounts "Retained Earnings Current Year" and "Net Income Current Year" which are set up for this purpose with both local and group currency. After the changes it began updating only the local currency.
If I do the rollup then run CXCL and run CX34 the CX34 will show a balance in the two accounts for local currency equal to the current month earnings in local currency but the group currency is zero 00.00

The table name for the system generated transactions (Retained Earnings).

Hi Gurus,
I have a doubt and want to know from U experts there. Hope you won't let me down. The situation is
I have created a new chart of account in our Oracle Financial. Uploaded 2007 transactions and opened year 2008 and closed all the periods of year 2007.
When I open a new year Oracle will do internal process transfer R&L balance to Retained Earnings account and make income & expenses accounts to Zero.
I want to know the system generated entries which table they are stored, this transaction is not in Gl_Balances table.
Its an urgent plz reply back soon.
Thanks in advance
Barkat

Hello.
For EBS 11.5.10.2
Let’s suppose that the last period of you fiscal year is called ‘LAST-2008’ (not adjusting period). If you have an account with a debtor balance of 100 in this period, when you open the following fiscal year you will find an entry of 100 in the first adjustment period of the fiscal year that the ‘LAST-2008’ period belongs to, in the column BEGIN_BALANCE_DR.
It is clear that if the balance is creditor you will find it in the BEGIN_BALANCE_CR column.
Hope this helps.
Octavio

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

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 issue

hello gurus,
what is the entry for retained earnings a/c.
regards
jana

Hi
Retained earnings is the net of the operations of the business after setting aside all expenses and other adjustments.
In our case, the balances of all P & L accounts is carried over to the retained earnings account at the year end by the following entry:
If Profit : P&L A/c. Dr.
Retained earnings a/c. Cr.
and vice versa if there is loss.
Regards

Retained earnings calculation

Hi Friends
Im very desesperated with a task in the consolidation monitor , the retained earnings have to be calculated in SEM, and am trying to cuztomizing a method, but I cant use selected items the system dont works because are items posting automatically
my thask is a reclassification from items:
accounts balance sheet are reclasificated to an item from RE in B sheet
accounts income statement are reclasificated to an item from P and Loss
any have experience in retained earnings calculation???
thanks in advance
best regards

Here is what we have in our config:
BS FS Items range: 100000 to 399999
RE FS Item: 360000
P&L FS Items range: 400000 to 899999
Method for Reclassification = One Sided Reclassification, with just a Source (no Target)
Step 1:
Trigger = FS Items 100000 to 359999 AND 360001 to 899998
Source = 899998
*Note, this step usually doesn't do anything, as it really only posts any out-of-balance for a trial balance to FS Item 899998.
Step 2:
Trigger = FS Items 100000 to 399999
Source = 360000
Step 3:
Trigger = 400000 to 899999
Source = 899999
Hope this helps.
Regards,
Jim

Retained earnings/annual net income differ in B/S and I/S

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