Manual posting to Retained Earnings & Reserves Account

[Former Member]

Hello Experts,

Due to acquisition which was an assets sale, we have to adjust the reserves and retained earnings balance in our SAP ECC 5.0 version. My understanding is we can't post a manual posting to retained earnings account and wondering how can I achieve a set balance by making adjustments.

Any suggestions would be highly appreciated!

Thanks

Mohammed.

[atif_farooq]

Hi:

SAP does not recommend manual posting to RE Account . In order to have effects in RE please open the previous fiscal year (if the entry or an adjustment pertains to closed fiscal year). Post the normal entry which should have been passed under normal circumstances. Please note that entry should be posted in special period of closed fiscal year. Having posted the entry execute FAGLGVTR , this will now carry forward an adjusted RE balance.

Hope this will help you.

Regards

[Former Member]

Thanks Atif. WE don't normally post anything to retained earnings as the balance is populated from P&L entries but due to acquisition, we have to adjust the figure and therefore wondering how to tweak the balance in auto-only account.

[atif_farooq]

Hi,

The procedure i told you will adjust the effects in RE accounts automatically ,upon posting normal entry when you will execute FAGLGVTR it will post the effects to RE account and an adjusted balance will be carried forward. This fullfils your requirment. I will not advise you to post direct entry when effects can be posted auto in RE. If you do so your cash flow statement will never tally.

Regards

Edited by: Atif Farooq on Sep 26, 2011 5:38 PM