How to create Retained Earning Account in SAP
The following steps will guide you how to create Retained Earnings Account in SAP FI.
Retained Earning Accounts: – the Account balances are carried forwarded from one fiscal year to next fiscal year by using the SAP standard carry forward program. Retained earnings accounts are allotted to each P&L accounts by specifying a P&L statement account type in the chart of Accounts. Each P&L account is assigned to a Retained Earning Accounts by key. For automatically carry forward the balance by the system to the retained earning accounts, you can define one or more P&L statements account types per COA and assign them to retained earning account.
The steps to define Retained Earning Account: –
Transaction Code for define Retained Earning Account: – OB53
IMG Menu Path: – IMG – > Financial Accounting – > General Ledger Accounting – > GL Accounts – > Master Data – > Preparations – > Define Retained Earning Account
Step 1: – Enter transaction code SPRO in the SAP command field and press enter
Step 2: – Select IMG Reference IMG
Step 3: – Follow the IMG menu path for define Retained earnings account
Step 4: – Next enter the chart of Accounts key that you wants to define retained earning account for COA and press enter
Step 5: – Update the following data and press enter
P&L Statement account type: – X
Account: – Enter account 120000
Then we get a warning message account 120000 not created in chart of Accounts ADAR
Step 6: – Ignore the warning message press enter. Press enter once again and save the configured retained earning accounts.
So finally the Retained Earning Account Configured successfully in SAP.