Retained earning account is an Equity account (of a Balance sheet) that records cumulative

(from year to year) net income/loss which is retained by the corporation rather than

distributed to its owners as dividends.

In the closing procedure of financial report (e.g. annually), the balance of Profit & Loss (P&L)

Statement accounts are carried forward to a retained earnings account, and the Profit/Loss

statement accounts is set to zero.

Retained Earning = Retained Earning from previous period + Net Income – Dividends.

In the creation of a P&L account ("FS00" T-code), we must assign a retained earning to it by

specifying P&L statement account type in the chart of Accounts (COA). If there is only one

retained earnings account, SAP will automatically uses the one defined in customizing. If

there are more than one retained earnings account, during P&L account creation, we must

choose the retained earnings account per P&L account like this:

We can define Retained Earnings Account with “OB53” T-code or through “SPRO” T-code

menu: Financial Accounting – General Ledger Accounting – G/L Accounts – Master Records

– Preparations – Define Retained Earnings Account.

Retained Earnings account defines the (P&L Account) to be used for posting the

expenditure and incomes of the year. The balance of this account appears as

Reserves & Surplus in the Balance Sheet for the year. This process involves carrying

forward the balances on your General Ledger accounts from one fiscal year into the

next. You can see the balance to be carried forward in the account balance display.

The carry-forward is not performed automatically by the system, even if you have

already posted data in the new fiscal year. You have to specify when you want to run

the programs for this in the SAP system. (Accounting à Financial Accounting -

>General Ledger -> Periodic Processing-> Closing-> Carrying Forward->

Balance) (Transaction Code F.16) However, when you post items to a prior year,

the system automatically carries forward the balance whether the program was run

or not.

The customer and vendor accounts, and the balance sheet accounts are carried

forward onto themselves. The income statement accounts are carried forward into

one or more retained earnings accounts.

Before you can include P&L accounts in the chart of accounts, you need to specify

the retained earnings account to which profits or losses are transferred. There is a

special program designed to transfer these amounts to this account. In order for this

program to be able to carry forward the profit or loss, you have to enter the number

of this retained earnings account in the system. Each P&L account is assigned to a

retained earnings account via a key. You have to enter this key in the P&L statement

account type field found in the chart of accounts area of each P&L account. You

create the retained earnings account and related key in Financial Accounting

Customizing under General Ledger Accounting à G/L Accounts à Master Dataà G/L

Account Creation Preparations à Define Retained Earnings Account.

SAP offers two options:

01. Using One Retained Earnings Account

02. Using Several Retained Earnings Accounts

Using One Retained Earnings Account: Normally, companies use one retained

earnings account. For this reason, X can be used as the key. In the chart of accounts

you enter X in the P+L statement account type field, and for account determination

you enter the retained earnings account under the key X.

Using Several Retained Earnings Accounts: By having more than one P+L

statement account type in the FI system, you are able to specify several retained

earnings accounts. You would use different retained earnings accounts in an

international corporate group to meet various requirements for preparing financial

statements. Expenses for special taxation provisions are relevant to income in the US

but not in Germany. These provisions for taxation are posted to special P&L

statement accounts which are needed in the US only. For all other postings you use

P&L statement accounts which are used both in Germany and in the US.

To report profits or losses of the prior year on your financial statements for Germany,

you would assign the P+L statement accounts valid for all countries to one retained

earnings account and to report profits or losses in the US, you would assign the P+L

statement accounts that are valid only for the US to a separate retained earnings

account.

In generating the country-specific financial statements, you would use retained

earnings account 1 for the German financial statements and both retained earnings

account 1 and 2 for the US financial statements in order to report the profits or losses

of the prior year.

If you do not include any P&L statement accounts for a financial statement version,

you must also omit the corresponding balance sheet accounts. The combined

balance of the omitted accounts must equal zero.

BANK ACCOUNTING CONFIGARATION

APP Check Printing Configuration   

If you complete with FBZP configuration then 

1.Check your Check Print program and Sap Script or Smart form for priting checks.

2.Check Layout and Logos and Bank address on check.

3. Create Variant in F110

Do some invoice posting and pay vendor using F110 or F-58 to test checks output.

I hope this helps,please assign points.

.Payment method for Country,.

Here you check teh payment medium (ex: RFFOUS_C)

& Payment method.

2.Payment method for company code;

here you check check printing form (Payment medium transfer) (ex: F110_PRENUM_CHCK).

When i posted a Document though F-58 for getting the 

output of Test Check Print Out, The Document was saved 

and showing a message of Print Job was generated. now 

where should i check the output print out veiw.

shall i go to SM37.

a. If you do not want to print checks in house , you can contract with a bank/third

party who will receive a file in a pre-agreed format from your company and then print

the checks and mail them on your behalf 

some considerations 

a. security surrounding, creation , access to payment file and transmission of the file 

b. data format - is it standard ACH format or it is a format that the service provider

will give 

c. do you have EDI in place. That is one thing to look at if the service provider can

accept EDI 820 and then use that information to print checks 

d. If your management agreeable to let a third party/bank print the checks. 

we have been doing it for several years now wherein we send an EDI 820 to the bank

(run RFFOEDI1 from F110- map the EDI message in Gentran EDI which will then

create a batch and send it to th ebank. bank sends back confirmation of amounts and

number of checks and then prints and mails them on our behalf. the file is encrypted

ont he way out to the bank 

this does costs but the savings is not having to manage in house printing and deal

with layout changes etc. downside is that if you have to change anything at all (say

company name changes from xx Inc to XXX, LLC then you are dependent on the

bank 

If you do not plan on enabling EDI, then you will probably end up creating a custom

program that will create this file in the format the service provider willneed. 

Please note however that you can provide a lot of information in the addenda records

if you configure the payment medium correctly using ACH-CTX format . the RFFOUS_t

will generate the payment file . 

I have heard of companies making their own copy of RFFOUS_T to meet non-standard

requirements and then including that in the f110 print program 

b. option 2 - is to print them in house 

considerations 

may need a key/software installed on your printer to print MICR Characters and

fascmile signature of authorized signatories. not sure if there is something in

standard that will print MICR and fascmile signature. There could something I am not

aware of 

get your ABAP developer to come up with a layout set based on your cheque format

and assign it in the payment method. 

The program RFFOUS_C will trigger the check printing as part of the F110 payment

program 

I think the standard sample that can be used for reference is F110_PRENUM_CHECK

or something like that. Let them take a look at that and they can easily adapt this by

making a copy to meet your requirements. 

In my mind you can choose it to do in-house or outsource this. depends on the

comfort level of your management and organizational policies in this regard 

I hope you find this informationuseful

HSUBBU

 

Posts: 55

Joined: Fri Jul 11, 2003 9:47 am

The Steps For Interest Calculation of Bank 

What are the steps involved for the rate and calculation of bank interest without posting? 

By : Vicent

Yes, you can do that, but there is no report available for you to give that information.  You can go for balance interest calculation. 

You can run the balance interest calculation and not process the batch input session. The posting happens only when you process the batch input session.

This configuration allows you to charge interest on overdue customer accounts. Interest can be calculated by using the line items or overall account balances. SAP keep tracks of the date of the last interest run and stores it in the customer master record. 

First create an Interest Indicator. 

OB46 - Interest Settlement Calculation Type  Int Calc. Type  P - calculate interest based on line items.  S - calculate interest based on account balances. Secornd, make it avaliable to the interest run program. 

OB82 - Interest Terms 

Third, determine the interest rate that will be used by the calculation. 

OBAC - Define Reference Interest Rates  OB83 - Enter the Reference Interest Rates Value  Fourth, assign the interest indicator to the reference interest rate.  OB81 - Define Time Dependent Terms  Finally, determine the how and to which accounts the interest program will post.  OBV1 - Prepare Interest on Arrears Calculation