How to Create Retained Earnings Account

This tutorial demonstrates how to create Retained Earnings Account

Enter Transaction code SPRO in the command field

How to Create Retained Earnings Account

In the next screen Select SAP reference IMG

How to Create Retained Earnings Account

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 create Retained Earnings Account

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

How to create Retained Earnings Account

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

How to create Retained Earnings Account

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 create Retained Earnings Account

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

How to create Retained Earnings Account

After this you can assign posting key for Debit and Credit

How to create Retained Earnings Account

After maintaining all required information  , press saveHow to Create Retained Earnings Accountand Enter your change request number

How to Create Retained Earnings Account

You have successfully created a Retained Earnings Account.