Retained earnings (SAP Business One)

The net profit for the year accumulated since the company was founded, adjusted for the distribution of dividends and retained earnings, such as additions to or withdrawals from provisions.
Negative values are referred to as net loss for the year.

The Group's retained earnings (RE) are made up of the total RE of the consolidated companies, taking into account the adjustment and consolidation entries as well as additional reclassifications due to the corporate guidelines on Annual accounts.

The presentation of retained earnings in the consolidation system is based on the order of the items relating to appropriation of profits within the consolidated financial statements. Chart of accounts.

If the appropriation of retained earnings is recognised in the balance sheet, RE is defined as a total item, which includes the balance sheet item "Net income for the year" and all retained earnings items.
If the appropriation of profit is presented as an addition to the profit and loss account, the retained earnings are a line item in the balance sheet. The item must then be reported accordingly in the individual financial statement (reporting data).

Both alternatives differ from the presentation of retained earnings in SAP general ledger accounting. There, the retained earnings are a negative balance of all other balance sheet accounts, its definition is implicit.

Versino Financial Suite

With the Versino Financial Suite retained earnings are managed transparently, efficiently and audit-proof in SAP Business One. The suite automates and documents all relevant processes, supports flexible analyses and ensures professional, legally compliant mapping of equity development - both in the individual financial statements and in group consolidation.