You can create a retained earnings journal entry for statutory reporting.
Select Financials > Global Ledger > Setup > Finance Enterprise Group > Maintenance.
Open the finance enterprise group and select the Reporting Basis tab.
Open the reporting basis for the statutory reporting of the location.
Select the Process Retained Earnings
check box.
Click Save.
Two new system accounts, Revenue Summary and Expense Summary, must be defined
to process retained earnings. A Retained Earnings ledger is automatically
created. This new ledger is used by the Retained Earnings journal.