You Assign a retained earnings account to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account in SAP.
At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account in SAP. You can define one or more P&L statement account type per char of accounts and assign them to retained earnings accounts.
Path: IMG-Financial Accounting-General Ledger Accounting-GL Accounts-Master data-Preparations-Define Retained Earnings Account (OB53)
update the following fields
Enter X in P&L statement, Enter the account code for Retained earnings account You will get a message Account not created in chat of accounts SRI"" ignore it.
Click save to save
Thus Retained earning account is created for chart of accounts SRI in SAP
You need to create this GL code later on at the GL code creation stage. you cam crate multiple retained earnings accounts with a key Y and GL code 100101-Retained earnings account (Local-Parent)
this retained earnings account is required to carry on the difference between the local reporting and parent reporting. For Ex.:-As per local Law the depreciation is calculated 10% straight line method( works out to 10000 INR) whereas as per the parent companies reporting the depreciation rate is 15% SLM( Works put to 15000 INR) thus the depreciation calculated will be different for local and parent. thus the reported will be different and the profit carried forward to the balance sheet will be different.
Eg:
the local depreciation is posted to GL code 400500 depreciation local 10000 INR
the depreciation for the parent is posted as difference between local and parent (15000 INR- 10000 INR=5000 INR) to GL code 400501 depreciation local parent 5000 INR.
The GL code 400500 is mapped to retained earnings account X and the GL code 400501 is mapped to retained earnings account Y in SAP.
At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account in SAP. You can define one or more P&L statement account type per char of accounts and assign them to retained earnings accounts.
Path: IMG-Financial Accounting-General Ledger Accounting-GL Accounts-Master data-Preparations-Define Retained Earnings Account (OB53)
update the following fields
Enter X in P&L statement, Enter the account code for Retained earnings account You will get a message Account not created in chat of accounts SRI"" ignore it.
Click save to save
Thus Retained earning account is created for chart of accounts SRI in SAP
You need to create this GL code later on at the GL code creation stage. you cam crate multiple retained earnings accounts with a key Y and GL code 100101-Retained earnings account (Local-Parent)
this retained earnings account is required to carry on the difference between the local reporting and parent reporting. For Ex.:-As per local Law the depreciation is calculated 10% straight line method( works out to 10000 INR) whereas as per the parent companies reporting the depreciation rate is 15% SLM( Works put to 15000 INR) thus the depreciation calculated will be different for local and parent. thus the reported will be different and the profit carried forward to the balance sheet will be different.
Eg:
the local depreciation is posted to GL code 400500 depreciation local 10000 INR
the depreciation for the parent is posted as difference between local and parent (15000 INR- 10000 INR=5000 INR) to GL code 400501 depreciation local parent 5000 INR.
The GL code 400500 is mapped to retained earnings account X and the GL code 400501 is mapped to retained earnings account Y in SAP.
No comments:
Post a Comment