How to retain earnning balance carry forward
目录
If we post on GL for retain earning account in OB53, the posted GL balance will auto transfer to new year’s beginning balance. But the amount of P&L sum is not considered. So we need to run FAGLGVTR again to post the
PLFR BIL X 12000000
ZFGL0150
FAGLGVTR - Balance Carryforward (New)
S1
12000000
Behaviour of Retained Earnings GL Account in relation to the Balance Carry Forward
Skip to end of metadata
Created by Declan Bolger, last modified on Dec 19, 2012
Go to start of metadata
Purpose
The purpose of this article is to explain the logic and function of the Retained Earnings account in relation to closing activities and balance carry forward at the end of year cycle.
Overview
You may notice that for certain Balance Sheet General Ledger accounts the opening balance of a fiscal year does not equal the closing balance of the same account for the previous fiscal year. It may be the case that the account in question is a Retained Earnings account and therefore the carry forward logic is not the same as for other all other GL accounts. Profit & Loss accounts behave differently to Balance Sheet accounts as we will shortly see.
Step 1
First determine if the account in question is a Balance Sheet account or not by checking in transaction FS00 (FS03 also). Just enter the company code and account number in the selection and click on the "Type/Description" tab:
You will be able to determine whether the account is a "Balance Sheet Account" or not. Additionally It may also be the case that you can determine if the account is related to Retained Earnings by checking the description of the account in the "Short Text" and/or "G/L Account Long Text" as in the example above.
Step 2
Next determine the Chart of Accounts related to the company code you are working with. This can be quickly checked in transaction OBY6 and selecting the company code:
Step 3
Next, open transaction OB53. You first enter the Chart of Accounts and then press Enter. On the next screen you will see what Retained Earnings account is defined for your Chart of Accouts and Company code:
Now you know for sure whether the account in question is indeed a Retained Earnings account or not.
Conclusion
Balances are not carried forward in a normal way for the Retained Earnings account. The opening balance for a Retained Earnings account is calculated using the closing balance for the account and the sum of the closing balances of all the Profit & Loss accounts using the following formula:
As a result of this, the opening balance of a Retained Earnings account will not equal the closing balances of the previous fiscal year. Consequently, the balance of the Retained Earnings account will not match the sum of line item items since balances are carried forward to the Retained Earnings accounts from other Profit & Loss Accounts without any line items generated.
The Retained Earnings account is classed as a Balance Sheet Account, not a Profit & Loss account.
Related Content
Related Documents
Related Notes
SAP Note 176067: Balance carryforward: Not equal to prev year closing balance
SAP Note 402917 : Balance carryforward is not correct
Understanding the logic of Retained Earnings account with Example
Skip to end of metadata
Created by Cora Phelan, last modified on Dec 05, 2016
Go to start of metadata
Purpose
This wiki provides a demonstration of how to understand the figures derived for a retained earnings account for the fiscal year 2013.
Overview
Within the balance carry forward, the P+L accounts are carried forward to the retained earnings accounts on the balance sheet (definition in Transaction OB53). No documents are created. The balance carry forward can therefore not be carried out via the line item display.
The opening balance on a retained earnings account consists of: Opening balance = Closing balance of the previous year + Retained earnings from the P+L accounts
Consequently, the opening balance on a retained earnings account does not correspond to the closing balance of the previous year.
The carry forward balance of the retained earnings account is representing the cumulated year-end balance of the corresponding P&L accounts. In this example the year-end balance of the P&L accounts are assigned to P&L account type 'X'.
Transaction OB53
Step 1 - Execute transaction FAGLGVTR for new GL balance carryforward (Transaction F.16 for Classic GL)
The program documentation on transaction FAGLGVTR states the following
This program is used to carry forward the balances of the general ledger or another ledger to the new fiscal year. The program can be run multiple times. Normally, the program does not need to be run more than once, since postings to the previous fiscal year are automatically carried forward to the current fiscal year, if the balance carry forward program has already been run. Generally the balance is carried forward as follows:
Balance sheet accounts are transferred with all additional account assignments.
P&L accounts are carried forward to the retained earnings account. Additional account assignments are not transferred. The transaction currencies are not transferred and are totalled in the local currency. Retained earnings account(s) have to be maintained for the P&L accounts in which all the P&L accounts are totalled.
Execute
Select Retained earnings Account Button
In SE16 table FAGL_CARRY_FORW - Last Balance Carryforward per Company Code/Ledger, is updated with new Fiscal year of balance carry forward for company code and ledger. (Table T882 for classic GL)
The table FAGL_CARRY_FORW (table t882 for classic GL) only contains the carryfoward for the last fiscal year in this example it is 2013
You note that the closing balance for 2012 does not match the opeing balance for 2013 via transaction FAGLB03
Step 2 - Check the cumulative P&L year-end balance of 2012 with report RFSSLD00
The carry forward period of the retained earnings account contains the cumulative amounts of the year-end balances of the P&L accounts which are assigned to this P&L type.
In SE38 enter report RFSSLD00. Specify the P&L type (in this example the value is 'X') in the 'Free selections parameters of the selection screen. Enter Chart of Accounts, Company Code, Fiscal Year and Reporting Periods.
Execute
At the end of the balance list you can review that the total balance for the P&L accounts. The Accumulated balance = 15.307,52
Step 3 - Check closing balance for the Retained earnings account
In SE38 enter report RFSSLD00. To obtain the closing balance for the Retained earnings account for 2012 remove X from free selections P&L statmt acct type. Enter Chart of Accounts, Company code, G/L Account (retained earnings account), Fiscal Year and Report Periods.
Execute
Step 4 - Display G/L Account Balance
Using transaction FAGLB03 for New GL (FS10N for classic GL)
Enter Account number (Retained earnings account) , Company Code, Fiscal Year (balance carryforward fiscal year) and Ledger
Execute
This cumulative balance is correct i.e. (Value from step 2 and value from step 3: 15.307,52 + 176,42) = 15.483,94
Related Content
Related Documents
[ERPFI:Behaviour of Retained Earnings GL Account in relation to the Balance Carry Forward]
Balance carried forward for an account is not equal with the previous year-end balance
Related Notes
SAP Note 176067 Balance carryforward: Not equal to prev year closing balance
SAP Note 402917 Balance carryforward is not correct
SAP Note 1581126 FI-SL: Carryfwd GVTR does not run as expected (analysis)
24326177.96
21889697.38
2436480.58
