Configuring Profit and Loss

  1. Ensure that the Group Accounts business object has been configured.
  2. Select Modules > Consolidation > Profit and Loss and click Configure.
  3. Specify this information:
    Total Profit and Loss
    Select the group account to be the top account in the profit and loss hierarchy and to reflect the period result. You can select only E (Expense) or R (Revenue) account types.

    This account is used in consolidation processes to transfer the profit and loss result to the balance sheet. Total Profit and Loss is also used in the Budgeting & Planning module.

    Sum of the P&L before Currency Translation
    Select the profit and loss account to hold the period result before the currency translation. You can select only accounts of type E or R.
    Currency Translation Differences
    Select the balance sheet account to which to post system generated currency exchange differences. Those differences result from the retranslation of the profit and loss statement with the balance sheet exchange rate. You can select only accounts of type A (Assets) or L (Liabilities). We recommend that you set up this account with a meaningful name, such as Translation Reserve PL.
    Deferred Tax – Expenditure
    Select the expenditure account to store system generated deferred tax charges. You can select only accounts of type E.
    Deferred Tax – Revenue
    Select the revenue account to store system generated deferred tax credits. You can select only accounts of type R.
  4. Click Save.