What is appropriation of retained earnings in SAP EC-CS - Consolidation?

SAP Term: appropriation of retained earnings

• Component: EC-CS

• Component Name: Consolidation

• Description: A systematic schedule which shows the relationship between the annual net income and the retained earnings of a consolidation unit or consolidation group. Retained earnings statements may not be prepared for nonlegal entities or consolidated groups. The appropriation of retained earnings can either be integrated on the balance sheet or stated as an addendum to the income statement. The method used affects the retained earnings item on the balance sheet and the balance to be carried forward.

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• Key Concepts: 
  Appropriation of retained earnings is a process in the SAP EC-CS Consolidation component that allows companies to allocate a portion of their retained earnings to specific accounts. This process is used to ensure that the company’s financial statements accurately reflect the company’s financial position. 
  
  How to use it: 
  In order to use the appropriation of retained earnings process, companies must first define the accounts that will be used for the appropriation. Once these accounts have been defined, companies can then enter the amount of retained earnings that will be allocated to each account. The total amount of retained earnings must equal the total amount of retained earnings reported in the company’s financial statements. 
  
  Tips & Tricks: 
  When entering the amounts for appropriation of retained earnings, it is important to ensure that all amounts are entered correctly and accurately. Additionally, it is important to ensure that all accounts used for appropriation are properly defined and configured in SAP EC-CS Consolidation. 
  
  Related Information: 
  For more information on appropriation of retained earnings in SAP EC-CS Consolidation, please refer to the SAP Help documentation or contact your local SAP support team.