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 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 G/L Accounts Master Data G/L
Account

Creation

Preparations

SAP

Define

offers

01.

Using

02.

Earnings

two

One

Using

Retained

options:

Retained

Several

Account.

Retained

Earnings

Account

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

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

3.

and

Logos

and

Create

Bank

address

Variant

on

in

check.
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

Here

you

check

for

teh

payment

&

Country,.

medium

(ex:

RFFOUS_C)

Payment

2.Payment

method

method.

for

company

code;

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

output

of

and
where

posted

Document

Test

Check

Print

showing
should

message
i

check

though
Out,
of Print
the

F-58

The

for

Document

Job

was

output

print

getting
was

the
saved

generated. now
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