How to Create Retained Earnings Account in SAP

How to Create Retained Earnings Account in SAP, using T code: OB53.

Meaning:

FAGLGVTR is the transaction code used at year-end to carry forward Profit & Loss (P&L) account balances into the Retained Earnings account. This process ensures that the net result of the P&L accounts is transferred to Retained Earnings, which then appears as part of the Balance Sheet.

Go to T code: SPRO.

SPRO Path -> Reference IMG -> Financial Accounting -> General Ledger Accounting -> G/L Accounts -> Master Data -> Preparations -> Define Retained Earnings Accounts – Click on Execute.

Popup will come, give Chart of Accounts and click on continue button.

Give Retained earnings GL account (Reserves and surplus)

Error Message: Account XXXXXX not created in chart of accounts XXXX

Message No. F4812

Once you press Enter, an alert will appear indicating that the GL account hasn’t been created yet. Simply click Save, then press Enter again.

Customizing request popup will come, select your request and click on continue.

How to Create Retained Earnings Account in SAP

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