This tutorial demonstrates how to create Retained Earnings Account

Enter Transaction code SPRO in the command field

How to Define Retained Earnings Account in SAP

In the next screen Select SAP reference IMG

 How to Define Retained Earnings Account in SAP

In next screen-"Display IMG"  navigate the following menu path :

SAP Customizing?Implementation Guide?Financial Accounting ?General Ledger Accounting?G/L Accounts ?Master Data? Preparations? Define Retained Earnings Account

 

How to Define Retained Earnings Account in SAP

In the next screen,  Enter the Chart of Accounts to maintain the Retained Earnings Account

How to Define Retained Earnings Account in SAP

In the next screen, select New Entries from the Application Menu

How to Define Retained Earnings Account in SAP

In the next screen, Enter the following information

  1. Enter the P&L statement account type, to determine the retained earnings account for each P&L account.If you are creating a P&L account, you must make an entry here.
  2. Enter the G/L Account which will be considered as Retained Earnings account

How to Define Retained Earnings Account in SAP

You can maintain the posting key for this account by selecting posting key in the Application Menu

How to Define Retained Earnings Account in SAP

After this you can assign posting key for Debit and Credit

How to Define Retained Earnings Account in SAP

After maintaining all required information  , press saveHow to Define Retained Earnings Account in SAPand Enter your change request number

How to Define Retained Earnings Account in SAP

You have successfully created a Retained Earnings Account.

 

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