What is retained earnings in SAP FI-LC - Consolidation?

SAP Term: retained earnings

• Component: FI-LC

• Component Name: Consolidation

• Description: The annual net incomes accumulated since the founding of the company, adjusted by the distributions of dividends and retained earnings appropriations, such as transfers to or withdrawals from provisions. Debit values are referred to as net loss. The retained earnings RE of the corporate group is made up of the total RE of the consolidated companies taking into consideration the standardizing and consolidating entries as well as additional reclassifications based on the corporate policies concerning financial statements. The way retained earnings are stated in the system depends on the order of the items for appropriating retained earnings within the chart of accounts. If the appropriation of retained earnings is stated on the balance sheet, then RE is defined as a totals item encompassing the financial statement item "Annual Profit", as well as all items related to the appropriation of retained earnings. If the appropriation of retained earnings is portrayed as an addendu

Smart SAP Assistant

• Key Concepts: 
  Retained earnings is a component of the financial statement of a company that represents the cumulative net income of the company since its inception, minus any dividends paid to shareholders. In SAP FI-LC Consolidation, retained earnings are used to calculate the consolidated net income of a group of companies. 
  
  How to use it: 
  Retained earnings are used in SAP FI-LC Consolidation to calculate the consolidated net income of a group of companies. This is done by taking the total net income of each company in the group and subtracting any dividends paid out to shareholders. The resulting figure is then added to the retained earnings from the previous period to calculate the consolidated net income for the current period. 
  
  Tips & Tricks: 
  When calculating retained earnings in SAP FI-LC Consolidation, it is important to ensure that all dividends paid out are accurately accounted for. This will ensure that the consolidated net income figure is accurate and up-to-date. 
  
  Related Information: 
  For more information on retained earnings and how they are used in SAP FI-LC Consolidation, please refer to SAP Help documentation or contact your local SAP support team.