T-code (OB53)

Path
Financial Accounting
General Ledger Accounting
GL Accounts
Master Records
Preparations
Define Retained Earning Account

You assign a retained earnings account to each P&L account by specifying a P&L statement account type in
the chart of accounts area of each P&L account.

At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained
earnings account.

Your specification depends on the chart of accounts.

The chart of accounts must be specified in the chart of accounts list.

1. Change the standard settings if necessary.

If you do not use one of the standard charts of accounts, you must specify the P&L statement
account type(s) and the retained earnings accounts for each new chart of accounts you set up.
2. Make sure the accounts you specify are created.