At the end of fiscal year the balance in the profit & loss account must be transferred to balance sheet account. To automatically carry forward the balance by the system to the retained earnings accounts define one or more profit & Loss statement account types per chart of account, assign them to retained earnings account. n year end All Profit & Loss Account balances Transfer to Surplus and Profit & Loss A/c (Reserve & Surplus) Retained Earning Accounts Same Balance of Balance Sheet are Carry forward for next year As an Opening Balances for next year. SAP gives it is mandatory field to define at the time of customization because consultant is not available at the year end.
Define Retained Earnings Account (T – Code OB53)
Path: SPRO>Financial Accounting>General Ledger Accounting>G/L Accounts>Master Data>Preparations>Define Retained Earnings Account Select IMG activity button
- Chart of Accounts : SSCL
- P&L Statement Acct Type : Account
- X 100100
Ignore the warning message and press enter save in your request press enter.