profit & balance sheet accounts

[Former Member]

hi all,

i need to know how the depreciation accounts for profit & loss & balance sheet are linked coz in my report i need to show the depreciation account of profit & loss for balance sheet & Depreciation account of balance sheet for profit & loss.

points will be rewarded.

thnx & rgds

[sridevi_p · Accepted solution]

Hi,

Through Account determination, u mention the GL account of depreciation while configuring Asset accounting module.

Pls. assign points, if useful.

Regards,

sridevi

[Former Member · Accepted solution]

hi,

thanx for replying i want to show the depreciation account of profit & loss statement for the balance sheet depreciation account in my report for the same fs item.

lets say my fsitem (for balance sheet )is:

plants & machinery

depreciation account 10002.

lets say my fsitem (for profit & loss) is:

plants & machinery

depreciation account 1113.

in my report which takes balance sheet fs items when i get account 10002 then i should select account 1113 & show the data of account 1113.

for tht i need to know how are these both linked.

points will be awarded.

thnx

[someswararao_perla · Accepted solution]

Hi,

We don't assign Balance sheet and Profit & Loss accounts to same FS item.

All P&L a/cs are linked to a retained earnings a/c automatically when we define only one Retained earnings a/c in customizing. And if we define multiple Retained earnings a/cs in customizing, then we have to assign the corresponding Retained earnings a/c for each P&L a/c in GL master.

And since Retained Earnings a/cs is BS a/c, they are grouped with all other BS accounts.

Hope this helps

Pl. assign points, if this is useful.

Cheers,

Som

[sridevi_p · Accepted solution]

Hi,

The link between Asset depreciation and Finance happens through GL accounts - that is through Account determination.

Based on the GL account, we display in P/L and in B/S. We DO NOT have different GL accounts for showing balance of same account - one in PL and other in BS.

as per accounting, PL contains revenue and expense and the difference - either profit or loss is carried to the Balance sheet through retained earnings.

Hope it is clear.

Pls. assign points, if useful

Regards,

Sridevi

[Former Member · Accepted solution]

hi,

lets say in operating fixed assets(b/l)

there is an fs item :jigs & FIXTURE which has depreciation account1112.

in administrative expense (P/L) under one of the fs item there is jigs & fixture depreciation account 1104.

in my report when the b/l account 1112 comes i need to replace it with 1104.

so thts why i need to know how are theyboth linked.

thnx & rgds