Year end closing: P&L Accounts - postings?

[former_member654515]

Dear all,

Suppose I have 50000 Profit and Loss Accounts, both revenue and costs accounts, each has either a debit or a credit. Suppose I only have one retained earnings Accounts.

What does SAP post at year-end to the retained earnings Accounts? 50.000 line items? Or only one total? Or does it use intermediate Accounts in-between?

I ask because Retained Earnings in my view is an account that, *after retained earnings are posted*, and next *after the shareholders have decided on what to do with the profits*, you manually post the retained earnings from the retained earnings account to other accounts (for example to the account for dividends to be paid). If retained earnings gets these 50.000 line items the account is unmanageably big?

Thank you for your help,

Bye

[iklovski]

Dear Vincent, I understand it is utmost difficult to understand the system's logic simply by reading training materials, without having an actual access to the system. But, the entire SAP postings logic cannot be taken to this platform either. It's main purpose is to address specific issues. Thank you for your understanding, Eli

[lucy_gray2]

Dear Vincent,

After balance carry forward, only the sum total of those 50,000 line items will be posted to the retained earnings account, and not those 50,000 line items.

Lucy