What is Retained Earnings Account in SAP

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

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

Retained Earnings Account

 

Step 5: – Update the following data and press enter

P&L Statement account type: – X

Account: – Enter account 120000

Retained Earnings Account

 

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.

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