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Retained Earnings Account

Hi SAP GURUS,

any one please explain what is retained earnings acoount and what is the use of it.

Thanks,

Pavan

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5 Answers

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    Former Member
    Dec 30, 2010 at 08:31 AM

    Hi Pavan,

    Retained Earnings Account is used for carry forward the balance and you cane use more than one retained earning account(one is mandatory).

    You can configure Retained Earnings through T-CODE OB53.

    For More Details please refer

    http://help.sap.com/saphelp_46c/helpdata/en/96/8b307e43ce11d189ee0000e81ddfac/content.htm

    Regards,

    Ranjith

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    Former Member
    Dec 30, 2010 at 08:25 AM

    Hello, Pavan:

    please refer to

    http://www.geekinterview.com/question_details/62701

    And about the usage, please refer to

    http://help.sap.com/saphelp_470/helpdata/en/96/8b307e43ce11d189ee0000e81ddfac/content.htm

    You can configure the retained earning account key via OB53.

    Best Regards, Lawrence

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    Former Member
    Dec 30, 2010 at 08:38 AM

    Hi

    retained earnings account means while defining gl account in chart of account segment we have to define whether its belongs to balance sheet account r profit and loss account.if u will select b/s means the balance will go to the same account where as prfit and loss a/c the balance will go to retained earnings account by making p&laccount zero balance.

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    Former Member
    Dec 30, 2010 at 08:40 AM

    Dear Pavan,

    For profit and loss statement accounts, the balance is carried forward to a retained earnings account and the profit and loss statement account is set to zero. A key (for example, X) is assigned to the account to which the balance is carried forward. You enter this key in the field "P&L Statement Type" in the chart of accounts segment.

    In Customizing, users define the retained earnings account that is assigned to expense accounts during G/L account master record creation. If there is only one retained earnings account, the system automatically uses the one defined in Customizing. If there is more than one retained earnings account, when you create a master record, you can select the retained earnings account for each profit and loss statement account.

    steps to create Retained Earning Account

    T-code OB53

    enter chart of accounts

    Account Assignment

    in P&L stmt give X

    & in Account: give the account number

    You can create the account in FS00 later also

    For more info you can also go to the below link

    http://help.sap.com/saphelp_470/helpdata/en/96/8b307e43ce11d189ee0000e81ddfac/content.htm

    Hope my answer is helpful to you

    Regards,

    Mir

    Edited by: mirosmank on Dec 30, 2010 9:41 AM

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    Former Member
    Jan 17, 2011 at 01:01 PM

    Retained earnings A/c is used to transfer all P&L A/c Balances to balance sheet a/c.

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