How To Fix FSBP_FISCAL_YEAR027 - Retained earnings based on company bylaws cannot be negative (FY &1)

SAP Error Message - Details

• Message type: E = Error

• Message class: FSBP_FISCAL_YEAR - Fiscal Year Information

• Message number: 027

• Message text: Retained earnings based on company bylaws cannot be negative (FY &1)

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FSBP_FISCAL_YEAR027 - Retained earnings based on company bylaws cannot be negative (FY &1) ?

  The SAP error message FSBP_FISCAL_YEAR027 indicates that the retained earnings for a specific fiscal year cannot be negative according to the company bylaws. This error typically arises during the year-end closing process or when trying to post transactions that would affect retained earnings.
  Cause:
  
  
  Negative Retained Earnings: The primary cause of this error is that the retained earnings for the specified fiscal year (indicated by &1 in the error message) have been calculated to be negative. This can happen if:
  
  There are significant losses that exceed the retained earnings balance.
  Incorrect postings or adjustments have been made to the retained earnings account.
  The closing process has not been executed correctly, leading to discrepancies in the financial statements.
  
  
  
  Configuration Issues: There may be issues with the configuration of the financial statements or the settings related to retained earnings in the SAP system.
  
  
  Solution:
  
  
  Review Financial Statements: Check the financial statements for the fiscal year in question to understand the reason for the negative retained earnings. Look for any unusual transactions or adjustments that may have led to this situation.
  
  
  Adjust Postings: If there are incorrect postings, you may need to reverse or adjust those entries to ensure that the retained earnings balance is accurate and does not result in a negative value.
  
  
  Year-End Closing Process: Ensure that the year-end closing process has been completed correctly. This includes:
  
  Closing all necessary periods.
  Ensuring that all transactions for the fiscal year have been posted.
  Running the necessary reports to confirm that the retained earnings are calculated correctly.
  
  
  
  Consult Company Bylaws: Review the company bylaws regarding retained earnings to ensure compliance. If the bylaws do not allow for negative retained earnings, you may need to take corrective actions to align with these regulations.
  
  
  SAP Configuration: If the issue persists, check the configuration settings in SAP related to retained earnings and fiscal year settings. You may need to consult with your SAP administrator or a financial consultant to ensure that everything is set up correctly.
  
  
  Seek Help from SAP Support: If you are unable to resolve the issue, consider reaching out to SAP support for assistance. They can provide guidance based on the specific configuration and setup of your SAP system.
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  F.01: Financial Statements
  F.16: Year-End Closing
  OB52: Open and Close Posting Periods
  
  
  Documentation: Review SAP documentation and help resources for more detailed information on retained earnings and year-end closing processes.
  User Forums: Engage with SAP user forums or communities where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.