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

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Transfer of Share of Profit to Partner Capital Account

Dear All
Our client is a Partnership Firm, after the year end closing Share of Profit /Loss has to be transferred to its Partners Capital Acoount . But how the same can be transferred as the profit/Loss is automatically calculated & posted internally to Retained Earnings.
Pls guide at the earliest as the books of accounts are required to be closed.
Regards
Veena

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

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

Defining Retain earnings

While defining retain earnings how can I get "account code"?From where can I get that?

Hi,
Good evening and greetings,
The GL Accounts in P&L are mapped to Retained Earnings Account. Any entry to these accounts would surely affect the balance of Retained Earnings Account.
Please reward points if found useful
Thanking you
With kindest regards
Ramesh Padmanabhan

Capital increase from Retained earnings

Hi Friends,
I am doing the capital increase from retained earnings. System updating stock units only. But, how can we decrease the retained earnings balance and how to increase the capital value.
Kindly provide the solutions. Thanks in advance.
Thanks,
NTR

Hi,
I think you should pass manual JV through FI module and updation of quantity through corporate action via Treasury Module.
Regards
Brijendra Shakdwipee
+91 9324748230

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 A/C (OB53)

Hi,
Can any one please let me know how the balance flow from P&L A/C to Retained Earnings A/C. Is there any Tcode to do this, as we do to transfer vendor & customer closing balance to the new accounting year (F.07).
Please explain me the concept of maintaining more than one retained earnings a/c. is it necessary to maintain 3 p&l a/c to maintain 3 retained earnings a/c.
Reply on this would be very helpful; you can send any notes to this mail id [Email removed by moderator]
Message was edited by:
Mario Herger

Hi
T code F.16 is used to carry forward balance to retained earning s account. As far as i understood, you can manintain as many Retained earning account as you want for a particular COA. Maintaining of more than one accounts may be as per the business needs like to have seperate results for same nature of expenses like manufacturing expenses, operating expenses etc. So for manufacturing expenses, you will maintain one retained earnings a/c and for operating exp accounts you will maintain another retained earning account
thanks
pushkaraj

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 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

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

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.

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]"
End If
      End If 'HS.Value.IsTransCur
End If 'Base versus Parent entities

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

Transfer of Retained Earnings to Proprietor/Partner Capital Account

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