Working with HFM Custom Rule

Session#14 : Calculating Retained Earning

Presented By :Amit Sharma

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What is Retained Earnings?

Generally, retained earnings is a corporation's cumulative earnings since the
corporation was formed minus thedividendsit has declared since it began. In other
words, retained earnings represents the corporation's cumulative earnings that have
not been distributed to its stockholders.
The amount of retained earnings as of a balance sheet's date is reported as a
separate line item in thestockholders' equitysection of thebalance sheet.
A negative amount of retained earnings is reported asdeficitoraccumulated deficit.

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Order of Preparation

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HFM Application Metadata

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Custom Procedure RetainedEarningsCalc()

Sub RetainedEarningsCalc()
Dim REValue
REValue = HS.GetCell("A#Netprofit.C1#TotalProducts.C2#TotalCustomers.
C3#TotalC3.C4#ClosingBalance.I#[ICP None]")
If REValue < 0 Then
HS.Exp "A#RetainedEarnings.C1#[None].C2#[None].
C3#[None].C4#Decreases.I#[ICP None] = -1 * "& REValue
ElseIf REValue > 0 Then
HS.Exp "A#RetainedEarnings.C1#[None].C2#[None].
C3#[None].C4#Increases.I#[ICP None] = "& REValue
End If
End Sub

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After Consolidation the Below Output

Received.

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Balance Sheet Structure

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Difference Between Retained Earnings & Net Income

The primary difference between retained earnings and net income is time.
Net income is the bottom-line profit your business earns for a given period.
Retained earnings is the accumulation of those earnings over time to
reinvest in the business or to maintain as a safety net.

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Any Question?

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