Retained Earning Account

Why do we need more than one retained earnings accounts, what is the precise use of two?

Questions by SAPgeekfresher

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  • Apr 26th, 2008

Each Profit & Loss a/c is assigned to a Retained Earnings Accounts via key. We have to entered this key in the P & L statement a/c type field found in the chart of a/c are of each P & L a/c. Normally, Companies use one Retained Earnings a/c. For this reason, X can be denoted as the key.Transaction Code = OB53

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  • Apr 26th, 2008

At the end of fiscal year the balance in the profit & loss a/c  must be transferred to Retained Earning account. To automatically carry forward the balance by the system to the retained earnings a/c define one or more profit & loss statement a/c types per chart of accounts and assign them to retained earnings account.

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Dan M

  • Jan 25th, 2010

Since it is used to house the result from a period of operation (revenue less expenses equals impact to R/E account), you do not need more than 1 R/E account per legal entity in SAP or any other ERP system.


  • Nov 28th, 2014

My what retained earnings account & how many types retained earnings account in sap?

what is the difference B/w master data & sub master data?

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