Retained earning account is an Equity account (of a Balance sheet) that records cumulative (from year to year) net

income/loss which is retained by the corporation rather than distributed to its owners as dividends. In the closing procedure of financial report (e.g. annually), the balance of rofit ! "oss ( !") #tatement accounts are carried forward to a retained earnings account, and the rofit/"oss statement accounts is set to $ero. Retained Earning = Retained Earning from previous period + Net Income Dividends. In the creation of a !" account (%&#''% ()code), we must assign a retained earning to it by specifying !" statement account type in the chart of *ccounts (+,*). If there is only one retained earnings account, #* will automatically uses the one defined in customi$ing. If there are more than one retained earnings account, during !" account creation, we must choose the retained earnings account per !" account li-e this.

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/e can define 0etained Earnings *ccount with 1,B234 ()code or through 1# 0,4 ()code menu. &inancial *ccounting 5 6eneral "edger *ccounting 5 6/" *ccounts 5 7aster 0ecords 5 reparations 5 8efine 0etained Earnings *ccount. 9ou can download video training of :ow to define retained earnings account. In the ne;t article we will e;plain how to 7aintain fiscal year variant, so stay visiting us. 9ou could get the latest update of this blog by subscribing here.

1A). Company is an organizational unit which is generally used in the legal consolidation to roll up financial statements of several company codes. A company can include one or more company codes. If we are going for Consolidation, we need to enter the 6 character alphanumeric company identifier that relates to this company code. Company Codes within a Company must use the same chart of accounts and fiscal year. And for consolidation purpose we use Group COA wherein we link the Operating COA thru entering the G account no. of the Group COA in the G Account of the Operating COA. !A). A financial statement "ersion corresponds to the chart of accounts and wherein Indi"idual #operational) accounts are assigned to the corresponding $% item on the lowest le"el of this "ersion. &ut as for the rollup of Accounts is not possi'le in all the $%( which can 'e copied, n rather can update manually n create multiple $%(s if necessary depending on the $inancial %tatements which are necessary for the Organisation. )A). All the Organi*ational units #Glo'al +ata) for a company code will ' copied to new company code upon using the copy function e,cept for the transactional data. -A). .es, Group COA can 'e assigned i.e., the G A/c.0o. is linked to the G Accounts of the 'oth Operating COA . 1hat means Group COA consists of 2ni3ue set of Accounts which can 'e linked to Op.COA 41 and Op.COA 4!. SAP FI/CO ips !y" Sneha #eddy Ans5 6.0o.1. In the %A7 system, consolidation functions in financial accounting are 'ased on companies. A company can comprise one or more company codes. for e,ample5 Company A ha"e - company codes which is e,isting in different state and / or country. 8hen Company A wants to consolidated the accounts, it will gi"e the common list of accounts which in turn called group chart of accounts. Group chart of account is used to define/ list the G account uniformly for all company codes. Ans5 6.0o.!. In %A7 9/) system, will allow only one financial statement "ersion for single COA which you need to assign the same while copying the COA. 1.code O&.: Ans5 6.0o.). 8hen you want to create $iscal .r (, 7osting 7eriod (, COA etc for new company code which is as same as e,isting company code, then you can copy all the information from the source company code to the target company else whate"er is re3uired as per the new company code re3uirement you can only copy the same, rest you can create as per the re3uirement. for e,ample $iscal year for new company code may 'e shortented fiscal year which is differ from the e,isting company code. In this case, fiscal year for new company code you ha"e to create and assign it to company code. Ans5 6.0o.-. Operational chart of accounts is something differ from the Group chart of accounts 'ut Group chart of account can 'e assigned to Operating chart of account 1 and ! through G account no.

Operating chart of accounts5 1he operating chart of accounts contains the G accounts that you use for posting in your company code during daily acti"ities. $inancial accounting and controlling 'oth use this chart of accounts. .ou ha"e to assign an operating chart of account to a company code. Group chart of accounts5 1he group chart of accounts contains the G accounts that are used 'y the entire corporate group. 1his allows the company to pro"ide reports for the entire corporate group.

Retained Earnings Account

Retained Earnings account defines the (P&L Account) to be used for posting the expenditure and incomes of the year. The balance of this account appears as Reser es & !urplus in the "alance !heet for the year. This process in ol es carrying for#ard the balances on your $eneral Ledger accounts from one fiscal year into the next. %ou can see the balance to be carried for#ard in the account balance display. The carry&for#ard is not performed automatically by the system' e en if you ha e already posted data in the ne# fiscal year. %ou ha e to specify #hen you #ant to run the programs for this in the !AP system. (Accounting Financial Accounting ->General Ledger -> Periodic Processing> Closing-> Carrying Forward-> Balance) (Transaction Code F !") (o#e er' #hen you post items to a prior year' the system automatically carries for#ard the balance #hether the program #as run or not. The customer and endor accounts' and the balance sheet accounts are carried for#ard onto themsel es. The income statement accounts are carried for#ard into one or more retained earnings accounts. "efore you can include P&L accounts in the chart of accounts' you need to specify the retained earnings account to #hich profits or losses are transferred. There is a special program designed to transfer these amounts to this account. )n order for this program to be able to carry for#ard the profit or loss' you ha e to enter the number of this retained earnings account in the system. Each P&L account is assigned to a retained earnings account ia a *ey. %ou ha e to enter this *ey in the P&L statement account type field found in the chart of accounts area of each P&L account. %ou create the retained earnings account and related *ey in +inancial Accounting ,ustomi-ing under $eneral Ledger Accounting . $/L Accounts . 0aster 1ata. $/L Account ,reation. Preparations . 1efine Retained Earnings Account. !AP offers t#o options2 34. 5sing 6ne Retained Earnings Account 37. 5sing !e eral Retained Earnings Accounts #sing $ne Retained Earnings Account% 8ormally' companies use one retained earnings account. +or this reason' 9 can be used as the *ey. )n the chart of accounts you enter 9 in the P:L statement account type field' and for account determination you enter the retained earnings account under the *ey 9. #sing &e'eral Retained Earnings Accounts% "y ha ing more than one P:L statement account type in the +) system' you are able to specify se eral retained earnings accounts. %ou #ould use different retained earnings accounts

in an international corporate group to meet arious re;uirements for preparing financial statements. Expenses for special taxation pro isions are rele ant to income in the 5! but not in $ermany. These pro isions for taxation are posted to special P&L statement accounts #hich are needed in the 5! only. +or all other postings you use P&L statement accounts #hich are used both in $ermany and in the 5!. To report profits or losses of the prior year on your financial statements for $ermany' you #ould assign the P:L statement accounts alid for all countries to one retained earnings account and to report profits or losses in the 5!' you #ould assign the P:L statement accounts that are alid only for the 5! to a separate retained earnings account. )n generating the country&specific financial statements' you #ould use retained earnings account 4 for the $erman financial statements and both retained earnings account 4 and 7 for the 5! financial statements in order to report the profits or losses of the prior year. )f you do not include any P&L statement accounts for a financial statement ersion' you must also omit the corresponding balance sheet accounts. The combined balance of the omitted accounts must e;ual -ero.

Con(ig re)uired to use standard cas* (low re+orts 'i, &-ALR-./0!11/02-/!2-/1

,reate a form using +!)< & Refer standard forms a ailable in +!)= and +!)>. ,reate a report by using +!)4 (assign the form that you ha e created +!)<) & Refer standard reports a ailable in +!)7 and +!)?. Please ma*e sure that you ha e completed your +inancial !tatement @ersion in all respects' before designing your cash flo# statement. 6"=A. ,ash +lo# !tatement ()ndirect 0ethod) @ariant 4 and @ariant 7' please note that these reports are coming from the form 3!APRAT)6&3? ,ash flo# (indirect) (Refer T code +!)=) and Reports 3!APRAT)6&3? ,ash flo# (indirect method) ariant 4 (Refer Tcode +!)7) & 3!APRAT)6&34 ,ash flo# (indirect method) ariant 7 (Refer T code +!)7) 3!APRAT)6&3< ,ash flo# (direct) +orm 3!APRAT)6&3< ,ash flo# (direct method) %ou should *no# #hat format you #ould li*e to see in the cash flo# statement. %ou should use the +! items accordingly copy the standard forms and changed according to your format.

%ou should be con ersant enough to do basic report painter. 1ouble clic* on the standard report !BALRBAC3477C4 & ,ash +lo# (1irect 0ethod) . $i e your parameters compcode etc.' and execute. 8o records #ere selected message #ill be there' in the same screen top u #ill find display form button' clic* on that' it #ill ta*e you to the form 3!APRAT)6&34 ' go to the form menu' clic* on change ' then go to edit menu' select general data selection / gen.data select & there u assign your financial statement ersion.and confirm. Then come to the form double clic* on each ro# and assign your respecti e financial statement ersion item and confirm. And you change the ro#s as per your re;uirements. !a e the form. Execute the report ,hange the )8T to your o#n ,hart of Account. 0a*e sure in the form you ha e assigned the +! items from your +inancial !tatement @ersion (6"=A). +! items are nothing but nodes in your +!@. 5se transaction ++CA ,ash Position reporting. %ou can obtain the tables #here here as #ell. %ou must acti ate ,ash 0anagement first'$o to transaction +1+1 in configuration and acti ate the company code for cash management. The ,ash +lo# reports !BALRBAC3477C4' !BalrBAC3477C7' sBalrBAC3477C? +6R REP6RT! +!E? (+!@) for pulling in data into report