What is financial statement imbalance in SAP EC-CS - Consolidation?

SAP Term: financial statement imbalance

• Component: EC-CS

• Component Name: Consolidation

• Description: An effect which reflects an imbalance in the balance sheet and income statement. An imbalance can occur when an entry is posted to accounts in both the income statement and the balance sheet. The SAP system calculates the imbalance and then posts an automatic balancing adjustment. The automatic adjustment is dependent on how retained earnings are treated: When stating the appropriation of retained earnings at the end of the income statement, an adjustment to retained earnings occurs. When stating the appropriation of retained earnings in the balance sheet, an adjustment to annual net income occurs.

Smart SAP Assistant

• Key Concepts: 
  Financial statement imbalance is a term used in the SAP EC-CS Consolidation component. It refers to a situation where the total of the debit and credit balances of a financial statement do not match. This can occur when there are errors in the data or when the data is incomplete. 
  
  How to use it: 
  In order to identify and resolve financial statement imbalances, users must first identify the source of the imbalance. This can be done by running a report that compares the debit and credit balances of each account in the financial statement. Once the source of the imbalance has been identified, users can then take steps to correct it. This may involve correcting errors in the data or entering additional data into the system. 
  
  Tips & Tricks: 
  It is important to regularly check for financial statement imbalances in order to ensure accuracy and completeness of financial statements. Additionally, users should be aware that financial statement imbalances can be caused by incorrect data entry or incorrect mapping of accounts. 
  
  Related Information: 
  For more information on financial statement imbalances, please refer to SAP's documentation on EC-CS Consolidation. Additionally, users may find it helpful to consult with an SAP expert for assistance in resolving financial statement imbalances.