Hi Ahmad,
To answer your question, let me briefly explain you how retained earnings work in standard SAP.
Each P&L account is assigned to one retained earnings account. The options are defined in config. transaction OB53, and within each P&L account, there is a field "P&L statement account type" (SKA1-GVTYP) specifying which retained earnings account is linked to it.
When you run balance carryforward (trans. F.16 with old GL or FAGLGVTR in the new GL), then the sum of movements of P&L accounts for a given year transfers to the opening balance(s) of respective retained earnings account(s) in the next year. No line items are posted with this step. So, it will look e.g. like this (assuming we only have the following three accounts in the company code):
Year 2013:
P&L acct 1: Opening balance: 0, Sum of movements: 1000 Cr, Closing balance: 1000 Cr.
P&L acct 2: Opening balance: 0, Sum of movements: 700 Dr, Closing balance: 700 Dr.
Retained earnings (linked to the above): Opening: 2000 Cr., movements: 1500 Dr., Closing 500 Cr.
Year 2014 - after balance carryforward:
P&L acct 1: Opening balance: 0 (because P&L accounts always start a year with zero)
P&L acct 2: Opening balance: 0 (same as above)
Retained earnings: Opening balance: 800 Cr. (closing balance of 500 Cr. plus sum of related P&L accounts of 300 Cr.), but you only have line items for the 1500 Dr. that you posted during the previous year
A similar thing is happening in your system:
- Line items of a retained earnings account will never match its balance. By definition, the opening balance of a r.e. acct in a given year equals the closing balance of the same account in the previous year plus the closing balances of all P&L accounts that point to it through the SKA1-GVTYP field. There are no line items for the second part (the P&L of the year) on the r.e. account itself - only on the P&L accounts.
- So, to prove the numbers to yourself and your auditor, I would suggest you to calculate a sum of P&L accounts for 2013 that point to your selected retained earnings account, and then add this amount to the closing balance of that account for 2013. This total should match with the opening balance of the retained earnings in 2014. If it does not, then there is an error in balance carryforward or in your calculation. But if it does then everything works as designed - and you will not see any items behind this balance change because they are on the P&L accounts. (Similarly, if you run FBL3N or FAGLL03 for a P&L account with an unlimited period, then your balances will not match with items either - because the balances reset to zero each year but items keep adding up.)
This should answer your question. For completeness, there is also an option in SAP to open and close a year with account postings - see e.g. program RFSUMB00. In that case, you would really see the items on the retained earnings account. However, this should only be used when the law requires it (e.g., in Turkey, Italy, Slovakia etc.) because it makes the closing more cumbersome and rigid. Normally, auditors are reasonable people if you explain them what is going on - and balance carryforward is no black magic.
Hope it was not too long. Let me know if you have any further question!
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