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

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Year end rate rollover issue (Retained Earnings)

HFM Retained earnings Showing wrong values after the years end(For January). It is happening for all parent entities at local currency total level(Entity Curr Total) but if we look at USD total values it is showing right values..
Thanks,
Mo

BBeloware the rules scriptswritten in the Rule file....
If pov_year > "2009" Then
               HS.Clear "A#35100"
               HS.EXP "A#35100.I#[ICP None] = A#RetainedEarnings.I#[ICP Top].Y#Prior.P#Last.V#<Entity Curr Total>"
'                     Balancing Account and Equity Translation Adjustment                                          *
'This occurs at the default currency if the assets do not equal liabilities and equity.
         ElseIfHS.Value.IsTransCur Then
            HS.Clear "A#35200.I#[ICP None]"
            HS.Exp "A#35200.C1#[None].I#[ICP None] = A#NetIncm.C1#TotC1.W#YTD.I#[ICP Top]"
            HS.Clear "A#35100"
            HS.EXP "A#35100.I#[ICP None] = A#RetainedEarnings.I#[ICP Top].Y#Prior.P#Last" ' + A#EquityAdj_35100.I#[ICP Top].V#<Entity Curr Total>"
            HS.Clear "A#CTA"
           If pov_entity <> "ElimCAN_TOT" Then
            HS.EXP "A#CTA = A#TotalAssets.I#[ICP Top] - A#TotalLiabStock.I#[ICP Top]"
            End If
        End If 'HS.Value.IsTransCur
Else 'Not a base level entity
'                     Balancing Account and Equity Translation Adjustment                                          *
'This occurs at the default currency if the assets do not equal liabilities and equity.
      If HS.Value.IsTransCur Then
'      Call WriteToFile ("Entity " & pov_entity & " for Value " & pov_value & " is a Translated Currency.Parentis " & HS.Parent.Member & "; Parent's currency is " & HS.Parent.DefCurrency(""))
         HS.Clear "A#35200.C1#[None].I#[ICP None]"
         HS.Exp "A#35200.C1#[None].I#[ICP None] = A#NetIncm.C1#TotC1.W#YTD.I#[ICP Top]"
         HS.Clear "A#35100"
         HS.EXP "A#35100.I#[ICP None] = A#RetainedEarnings.I#[ICP Top].Y#Prior.P#Last"
         HS.Clear "A#CTA"
         If pov_value = "USD" Then
          HS.EXP "A#CTA = A#TotalAssets.I#[ICP Top] - A#TotalLiabStock.I#[ICP Top]"
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End If 'Base versus Parent entities

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

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

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

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/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

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

Retained Earnings Balance Carryfoward

Hello SAP Consultants,
When i run FAGLGVTR for balance carryforward to next year, the run was successful. But when i check the balance for retained earnings account in FAGLB03 the amount is showing more then what exactly carryforwarded, when i try to double click then it is showing the right amount (Line item).
Please suggest how to rectify this issue
Edited by: keepintouch on Sep 17, 2009 7:08 AM

Hi
This problem can occur due to multiple reasons
please review the following OSS notes, It is best to contact SAP through OSS to resolve this issue.
Note 1113114 - FAGLL03: Incorrect plus/minus signs for negative postings
Note 1163346 - FAGLL03: Incorrect plus/minus signs for negative postings(2)
Note 1170400 - Document splitting: Incorrect posting key in new G/L
Regards
Sach!n

Retained earnings in Periodic application

Hi
I have a periodic application where I would like to post retained earnings on the balance sheet.
Below is the part of my default logic form my YTD application.
*WHEN ACCOUNTDIM.GROUP2
*IS "PL"
    *WHEN ACCDETAILDIM
    *IS "FLOW_CLOSING"
        *WHEN INTCODIM
        *IS "IC_ALL"
             *REC(ACCOUNTDIM="ACC_PROFIT_BS",ACCDETAILDIM="FLOW_RESULT",INTCODIM="IC_ALL",DataSrc="CalcPreAdj")
             *REC(ACCOUNTDIM="ACC_PROFIT_BS",ACCDETAILDIM="FLOW_CLOSING",INTCODIM="IC_ALL",DataSrc="CalcPreAdj")
         *ENDWHEN
    *ENDWHEN
*ENDWHEN
Re-using this in my periodic application result in only moving the periodic result to the balance sheet and not the YTD result.
What is best practice for moving retained earnings in a periodic application?

Hi
Thanks for the quick reply.
Are there any performance issues by calling SPRUNCALCACCOUNT in default logic?
For information I hav put myfull default logic is below:
*WHEN ACCOUNTDIM.GROUP2
*IS "PL"
    *WHEN ACCDETAILDIM
    *IS "FLOW_CLOSING"
        *WHEN INTCODIM
        *IS "IC_ALL"
             *REC(ACCOUNTDIM="ACC_PROFIT_BS",ACCDETAILDIM="FLOW_RESULT",INTCODIM="IC_ALL",DataSrc="CalcPreAdj")
             *REC(ACCOUNTDIM="ACC_PROFIT_BS",ACCDETAILDIM="FLOW_CLOSING",INTCODIM="IC_ALL",DataSrc="CalcPreAdj")
         *ENDWHEN
    *ENDWHEN
*IS "BS"
    *WHEN DATASRCDIM.DATASRC_TYPE
    *IS "I"
        *WHEN ACCDETAILDIM
        *IS "FLOW_CLOSING"
            *WHEN ACCOUNTDIM.CALCULATIONTYPE
            *IS "E"
                *REC(ACCDETAILDIM="FLOW_ERROR",ACCOUNTDIM=ACCOUNTDIM.ID,INTCODIM=INTCODIM.ID)
            *IS "A"
                *REC(ACCDETAILDIM="FLOW_VAR",ACCOUNTDIM=ACCOUNTDIM.ID,INTCODIM=INTCODIM.ID)
            *ENDWHEN
        *ELSE
            *WHEN ACCOUNTDIM.CALCULATIONTYPE
            *IS "C"
                *REC(ACCDETAILDIM="FLOW_CLOSING")
            *IS "E"
                *REC(FACTOR=-1,ACCDETAILDIM="FLOW_ERROR",ACCOUNTDIM=ACCOUNTDIM.ID,INTCODIM=INTCODIM.ID)
            *IS "A"
                *REC(FACTOR=-1,ACCDETAILDIM="FLOW_VAR",ACCOUNTDIM=ACCOUNTDIM.ID,INTCODIM=INTCODIM.ID)
            *ENDWHEN
       *ENDWHEN
    *IS "M","A"
        *WHEN ACCDETAILDIM
        *IS "FLOW_CLOSING","FLOW_ERROR","FLOW_RESULT"
        *ELSE
            *WHEN ACCOUNTDIM.CALCULATIONTYPE
            *IS "A","C","E"
                *REC(ACCDETAILDIM="FLOW_CLOSING",ACCOUNTDIM=ACCOUNTDIM.ID,INTCODIM=INTCODIM.ID)
            *ENDWHEN
       *ENDWHEN
    *ENDWHEN
*ENDWHEN
*COMMIT

CTA on retained earnings

Hi
I am on BPC 5.1 SP5 (will upgrade to SP09p1 next week)
Need a little verification on a solution to a problem with Currency Translation Adjustments on Retained Earnings.
Currency translation for the P&L is periodic AVG, this require the calculation of CTA for retained earnings should be:
(LC (jan) * (END (Current period)-AVG (jan))) + (LC (feb) * (END (Current period)-AVG (feb))) + (LC (mar) * (END (Current period)-AVG (mar))) u2026.
Creating a CTA "Currency conversion rule" to calculate this is a bit complex. So her is what I have tried.
1. creating a currency conversion rule [END]-[AVG] and check "Apply to periodic". This is the solution I had hoped would work, but it dosn't ;o(
The two solutions I have found the returns the correct result are:
The First solution: Create a currency conversion rule to calculate the [END] value and then have a logic calculate the -[AVG] and post both to the same Flow member.
Draw back: This requires running both currency conversion and a logic to get the correct numbers.
Another solution is to create to Flow members one to hold the -[AVG] with apply to periodic and one to hold [END], then create a Parent member for both.
Draw back: This require 3 Flow members to calculate CTA
What is the recommended way of solving this issue? It must a known issue in BPC for many!
Jesper

Hi
The currency conversion with [END]-[AVG] works, but it does not return the correct figurs. Believe this only works for YTD conversion of the P&L.
An example on how the calculation should be for March is:
LC for January * (END for March - AVG for January) + LC for February * (END for March - AVG for February) + LC for March * (END for March - AVG for March)
Have also tried with multiple rules, but if you have more than one currency conversion rule with the same destination the first is overwritten!
Jesper

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

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

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

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 issue

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