| Balancing methods for Profit and Loss accountsWhen you close the financial year, you can use the Automatic Balancing of Profit and Loss Accounts (tfgld6202m000) session to clear Profit
and Loss accounts and post the total balance to the Retained Earnings account.
In the Company Parameters (tfgld0503m000) session, you select the balancing method
for the Profit and Loss accounts. The following balancing methods are available: Total All Profit and Loss accounts are collectively cleared against
the balancing account that you select in the Company Parameters (tfgld0503m000) session and the total amount on the balancing account
is posted to the Retained Earnings account. The profit and Loss accounts are
not individually cleared. Individual Accounts The Profit and Loss accounts are individually cleared against
the Retained Earnings account. Source of Earnings Each Profit and Loss account is individually cleared against
the related Source of Earnings account. You can use this method to see how the
total profit for the year is composed, for example, of operating profit,
extraordinary profit, and so on.
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