| | Balancing methodsWhen you close the financial year, you can use the Automatic Balancing (tfgld6202m000) session to clear Profit
and Loss accounts and post the total balance to the Retained Earnings account.
In the Finance 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 Finance 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. Individual Accounts with Closing Balance The Profit & Loss accounts are individually cleared against
the balancing account that you select in the Finance Company Parameters (tfgld0503m000) session. The Balancing account is cleared against the
Closing Balance account. The non Profit & Loss accounts are also
individually cleared against the Closing Balance account.
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