Retained Earnings

To ensure correct transfer, you must define these system accounts in Business Modeling:

• The top account that represents the income statement result.

  Select Business Modeling > Modules > Consolidation > Profit and Loss. We recommend that you select the Profit (Loss) Attributable to Parent's Equity Holder account as the Total Profit and Loss account.

• The account that represents profit and loss from the balance sheet.

  Select Business Modeling > Modules > Consolidation > Balance Sheet. We recommend that you select the Profit (Loss) for the Period account as the Balance Sheet Profit/Loss account.

• The carry forward account.

  Select Business Modeling > Modules > Consolidation > Core. We recommend that you select the Post Acquisition Retained Earnings account as the Carry Forward account.

After you define these accounts, you can publish the data model. We recommend that you set up all business objects and settings before you publish data.

In the opening balance, the Retained Earnings account presents the closing balance of itself and the profit or loss of the source period. Therefore, the closing balances of retained earnings and the source period's profit or loss are added and transferred to the opening balance of retained earnings.