How To Fix GCS005 - Retained earnings in B/S not equal to retained earnings in I/S

SAP Error Message - Details

• Message type: E = Error

• Message class: GCS - SAP Consolidation: Validations

• Message number: 005

• Message text: Retained earnings in B/S not equal to retained earnings in I/S

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

Unfortunately, there isn't any extra information in this error notice.

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Smart SAP Assistant

• What is the cause and solution for SAP error message GCS005 - Retained earnings in B/S not equal to retained earnings in I/S ?

  The SAP error message GCS005 indicates a discrepancy between the retained earnings reported in the Balance Sheet (B/S) and those reported in the Income Statement (I/S). This error typically arises during the closing process of a financial period, particularly when the financial statements are being generated.
  Cause:
  
  Data Entry Errors: Incorrect entries in the financial records can lead to mismatches between the retained earnings in the Balance Sheet and the Income Statement.
  Incorrect Configuration: Issues with the configuration of the financial statements or the chart of accounts can cause discrepancies.
  Unposted Transactions: Transactions that have not been posted or have been posted incorrectly can lead to differences in retained earnings.
  Manual Adjustments: Manual adjustments made to retained earnings without corresponding adjustments in the Income Statement can cause this error.
  Closing Procedures: If the closing procedures are not followed correctly, it can lead to inconsistencies in the financial statements.
  
  Solution:
  
  Reconcile Accounts: Check the retained earnings account in the Balance Sheet against the Income Statement. Ensure that all transactions affecting retained earnings are correctly posted.
  Review Closing Entries: Ensure that all necessary closing entries have been made and that they are accurate.
  Check Configuration: Review the configuration settings for the financial statements and the chart of accounts to ensure they are set up correctly.
  Post Missing Transactions: Identify any unposted transactions that may affect retained earnings and post them accordingly.
  Adjust Manual Entries: If manual adjustments were made, ensure that they are reflected in both the Balance Sheet and the Income Statement.
  Run Reports: Use SAP reports to analyze the retained earnings and identify any discrepancies. Reports such as the trial balance or balance sheet can help in this analysis.
  Consult Documentation: Refer to SAP documentation or consult with your SAP support team for specific guidance related to your system configuration.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FBL3N (Display G/L Account Line Items) and S_ALR_87012301 (Balance Sheet) to help in your analysis.
  SAP Notes: Check for any SAP Notes related to GCS005 for additional insights or patches that may address known issues.
  User Forums: Engage with SAP user forums or communities for shared experiences and solutions from other users who may have encountered the same issue.
  
  By following these steps, you should be able to identify and resolve the discrepancy causing the GCS005 error in SAP.