Retained earnings (SAP Business One)

Of the Profit carried forward is a retained profit from the previous year that was neither distributed nor transferred to reserves. It is carried forward to the next business year and influences the unappropriated profit and the Equity of the company.

Origin and legal basis:

Arises when the shareholders' meeting resolves to utilise part or all of the net profit for the year Not to be used.
Legal basis: § Section 268 (1) HGB
If the annual accounts after partial appropriation of profits, the profit brought forward is replaced by the profit carried forward. Retained earnings.

Function in the annual financial statements:

The profit carried forward will be utilised in the new Net income for the year added.
It is included in the calculation of retained earnings and serves as a basis for decisions on distributions.

Significance for the appropriation of profits:

The profit carried forward can be utilised in the following year:
- be distributed
- be transferred to retained earnings
- again be carried forward as retained earnings

Presentation in DATEV SKR 03:

K 0860 / F 0865 / F 0867: Profit carried forward before utilisation
F 9803 / F 9805: Capital account adjustments in connection with profit carryforwards

influence on equity:

The profit carried forward increases the Equityas these are retained profits.
It is regarded as a component of available capital for internal financing.

Booking example: A net profit for the year of € 20,000 is partially utilised: € 10,000 is distributed, € 5,000 is transferred to reserves, € 5,000 remains as profit carried forward (booking: Net profit for the year to profit carried forward).

Profit carried forward in SAP Business One:

The profit carried forward is not recognised as a separate balance sheet item, but is reported under P&L balance in the equity account integrated.
the Automatic balance sheet update takes into account the profit/loss accumulator, which influences equity.
A profit carried forward can be shown manually by transferring the P&L balance to a specific account (e.g. "Profit carried forward").
in the Balance sheet report equity including profit carried forward is shown net - a detailed breakdown is only provided for individual account structures.

Versino Financial Suite

With the Versino Financial Suite makes the management of retained earnings in SAP Business One much more transparent, efficient and audit-proof. The suite automates and documents all relevant processes, enables targeted reporting in the balance sheet report and offers flexible analysis and export options.