What is balance carryforward in SAP FI-LC - Consolidation?

SAP Term: balance carryforward

• Component: FI-LC

• Component Name: Consolidation

• Description: The balances of all balance sheet items are carried forward, at the end of the fiscal year, from the prior year into the new year as the opening balance. Statistical items can be carried forward if required. The carryforward of income statement items is controlled by selected items. This is particularly important for the carryforward of retained earnings, if the appropriation of retained earnings is shown at the end of the income statement. transaction types are carried forward to their assigned carryforward transaction type.

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• Key Concepts: 
  Balance carryforward is a feature of the FI-LC Consolidation component of SAP software. It allows users to transfer the balance of an account from one period to the next, eliminating the need to manually enter the same balance for each period. This feature is especially useful for accounts that have a consistent balance over time, such as cash accounts or accounts with fixed assets.
  
  How to use it: 
  To use balance carryforward, users must first set up the account in the FI-LC Consolidation component. Once the account is set up, users can select the “Balance Carryforward” option in the account settings. This will enable the feature and allow users to transfer the balance from one period to the next.
  
  Tips & Tricks: 
  When using balance carryforward, it is important to remember that only the balance of an account will be transferred from one period to the next. Any other information associated with the account, such as transactions or notes, will not be transferred. 
  
  Related Information: 
  For more information on balance carryforward and other features of FI-LC Consolidation, please refer to SAP’s official documentation. Additionally, there are many online tutorials and videos available that provide step-by-step instructions on how to use this feature.