Retained Earnings in BPC

[Former Member]

Hi All,

Can any one help me in the Area of Retained Earnings..Below are my questions:

1.How is Retained Earnings calculated in BPC? Is it a calculated figure or carried forward figure?

2. When it is calulated?

3.How it is carried forward from P&L account to B/S..Through any Business Rule or Script Logic.If so what are those rules/logic

Do you have any document on the same that could help to understant the above mentioned areas on Retained Earnings.

Thanks,

Shankar.v

[chemicala_srimallikarjuna · Accepted solution]

Hi,

By Using the Copy Opening & Carry forward Function, You Can achieve this.

For example, if you use the dimension “flow” in the data model when closing balances of one year are rolled forward into the opening balances of the following year, the balance to be rolled forward will be found under flow type Closing, but

will need to be posted in the new year under flow type Opening. As well accounts may also change.

For example, the account Retained earnings current year income, when rolled forward may in the new year be stored under an alternate account Retained Earnings from prior period. Accordingly, the ability must also exist to change accounts during roll-forward. The “Business Rules Tables” in this case are designed to define what values need to be rolled forward (i.e. accounts and flows and to what accounts and flows these values should be posted in the new year). The carry-forward function can be applicable to both Financial and Legal Consolidation Applications.

Carry-forward rules give you the ability to generate the Opening Balance of any category based on two main properties: Flow Type in the Account dimension Opening category in the Category dimension This procedure can be used to initialize a new reporting period with the closing balances of the last period from the previous year into the opening balances of the current period. In a Legal Consolidation application, such balances are usually identified as members of the FLOW dimension. In simpler applications, however, it is also possible to store them as additional accounts in the ACCOUNT dimension.

Balance Carry Forward Business Rules

1. To configure the business rules, go to the Admin Console, and fill in the business rule based on the data below:

For example In row 1, roll the entire balance sheet (closing flow) from 2009.DEC to 2010.JAN (opening flow). Then, in lines 2 and 3, post the annual net income in 390000009( Source Account) to the prior year retained earnings account 25712000(Destination Account) and flow 'F_ARES'.

Regards

CSM Reddy

[Former Member · Accepted solution]

Hi Chemicala,

When we move current year retained earnings to prior year retained earnings, old balances are overwritten rather than appended. How exactly does the movement from CYRE to PYRE work?

Thanks a lot!

R