Example of balancing by source of earnings

In this example, the following accounts are balanced:

Profit and Loss account	Debit/ Credit	Amount	Source of earnings account
Costs of Goods Sold	Debit	400	Operating Results
Sales Revenue	Credit	1000	Operating Results
Restructuring Charges	Debit	50	Extraordinary Results

If you use the Source of Earnings balancing method, when you run the Automatic Balancing (tfgld6202m000) session LN creates the postings described here.

To balance the Profit and Loss accounts:

Ledger account	Debit/ Credit	Amount
Costs of Goods Sold	Credit	400
Sales Revenue	Debit	1000
Operating Results	Credit	600
Restructuring Charges	Credit	50
Extraordinary Results	Debit	50