What is retained earnings in SAP FIN-CS - S4HANA Financial Consolidation?

SAP Term: retained earnings

• Component: FIN-CS

• Component Name: S4HANA Financial Consolidation

• Description: The accumulated annual net income since the founding of the consolidation unit, adjusted by the distributions of dividends and by 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.

Smart SAP Assistant

• Key Concepts: 
  Retained earnings is a term used in accounting to refer to the portion of a company's profits that are not distributed to shareholders as dividends, but instead are kept and reinvested in the business. It is also known as accumulated earnings or accumulated profits. In SAP S4HANA Financial Consolidation, retained earnings are used to calculate the total equity of a company. 
  
  How to use it: 
  In SAP S4HANA Financial Consolidation, retained earnings are used to calculate the total equity of a company. This is done by subtracting the total dividends paid out from the total profits earned over a period of time. The resulting figure is then added to the beginning balance of retained earnings for that period. This figure can then be used to calculate the total equity of the company. 
  
  Tips & Tricks: 
  When calculating retained earnings in SAP S4HANA Financial Consolidation, it is important to ensure that all dividends paid out are accurately accounted for. This will ensure that the resulting figure is accurate and can be used to accurately calculate the total equity of the company. 
  
  Related Information: 
  Retained earnings are an important part of financial reporting and can be used to measure a company's performance over time. It is important to understand how retained earnings are calculated in order to accurately assess a company's financial health. Further information on retained earnings can be found in the SAP S4HANA Financial Consolidation documentation.