How To Fix GN003 - Retained earnings <> IS net income

SAP Error Message - Details

• Message type: E = Error

• Message class: GN - SAP Consolidation: Message Texts for Validations

• Message number: 003

• Message text: Retained earnings <> IS net income

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message GN003 - Retained earnings <> IS net income ?

  The SAP error message GN003, which states "Retained earnings <> IS net income," typically occurs during the year-end closing process in SAP. This error indicates a discrepancy between the retained earnings and the net income reported in the Income Statement (IS). Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  
  Discrepancy in Financial Data: The retained earnings balance does not match the net income reported in the Income Statement. This can happen due to:
  
  Incorrect postings in the financial accounting module.
  Unposted or incorrectly posted journal entries.
  Errors in the closing process of previous periods.
  Manual adjustments that were not reflected in the retained earnings calculation.
  
  
  
  Configuration Issues: There may be issues with the configuration of the financial statements or the way the retained earnings account is set up in the system.
  
  
  Timing Issues: Transactions that affect net income may not have been posted before the closing process was executed.
  
  
  Solution:
  
  
  Reconcile Accounts: 
  
  Check the retained earnings account and the net income account for discrepancies. 
  Use transaction codes like FS10N (Display Account Balance) or FBL3N (G/L Account Line Items) to review the postings.
  
  
  
  Review Journal Entries: 
  
  Look for any unposted or incorrectly posted journal entries that may affect the net income or retained earnings.
  Ensure that all necessary entries for the fiscal year have been posted.
  
  
  
  Check Closing Entries: 
  
  Ensure that all closing entries for the previous fiscal year have been completed correctly.
  Verify that the closing process was executed without errors.
  
  
  
  Adjust Configuration: 
  
  If the issue is related to configuration, review the settings for the retained earnings account in the chart of accounts and ensure they are set up correctly.
  
  
  
  Run Reports: 
  
  Use financial reports to identify where the discrepancies are coming from. Reports like the Balance Sheet and Income Statement can help in identifying the source of the issue.
  
  
  
  Consult Documentation: 
  
  Review SAP documentation or consult with your SAP support team for specific guidance related to your version of SAP.
  
  
  
  Related Information:
  
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  F.01 (Financial Statements)
  S_ALR_87012284 (Balance Sheet and P&L Statement)
  FAGLB03 (Display G/L Account Balances)
  
  
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message. SAP frequently updates its knowledge base with solutions to common problems.
  
  
  User Roles: Ensure that users involved in the closing process have the appropriate roles and authorizations to post and review financial data.
  
  
  Testing: After making adjustments, perform a test run of the closing process to ensure that the error does not reoccur.
  
  
  By following these steps, you should be able to identify and resolve the issue causing the GN003 error in SAP. If the problem persists, consider reaching out to SAP support for further assistance.