Define Retained earnings accounts in SAP FICO

Define Retained earnings accounts:

In the year end:   all P & L account balances transfer to surplus in P & L A/c (Reserves & Surplus) (100100-100199) Balance Sheet A/c balances –carry forward to next year as opening balance.

This is required in the year end and not during the implementation. SAP has made mandatory this step during the implementation. If the consultant does not do this step, we will have problems in the year end.

Though accounts are not yet created assign on account for retained earnings account purpose. We can specify retained earnings account any account number which is with in range 100100-100199.

Generally we specify the first account i.e.100100 as Retained earnings account and when we start creating the accounts the first account to be created is 100100 surplus in P & L Account.

Path:  SPRO – Financial accounting – General ledger accounting – GL Accounts – Master Data – Preparations – Define retained earnings account.

Give you chart of accounts 6200 enter. The transaction code is OB53 .

Account assignment

P & L Statement type ‘X’

Account 100100

Select save button or Ctrl+S

We get a warning message account 100100 not created in chart of accounts 6200.

Ignore the warning the message press enter. Press enter once again to save in the request.

Accounts creation is at end user area and the transaction code is FS00

                                                                        P & L type                              Account No.

            400300           Rent Account

P & L A/c                                                        X                                             100100

Balance Sheet A/c.

In the year end the balance will go to account no.100100

100000 Equity share capital

P & L A/c

Balance Sheet A/c.  Select

In the year end the balance will go to the same account as opening balance 1 and 2 series for Balance Sheet  Accounts 3 and 4 series for P & L Accounts.

a)            Net operating profit (operating income – operating expenses.

b)            Net non-operating profit (non-operating income non operating expenses)

400300           Rent account                 P & L         Account No.   

                                                                                        Type

                                                     Select              X       100100       Net operating profit

P & L Statement A/c type                X               Y      100101        Net non operating profit

Balance Sheet A/c.                                                                          Profit

In the year end the balance will go to account no.100100

300100 profit or sale of shares.

P & L A/c.

P& L Statement A/c. type Y

In the year end the balance will go to account no.100101.