retaind earning

[sekhardivvi]

wat s retained earnings,how the account ll be generated

[srini007]

Hi Sekhar,
Retained earning is the profit that is retained by the business after distributing all the dividends to share holders, interest to banks for loans and stake holders, other outstanding payments and after making all necessary adjustments.
This is the only mandatory account which we need to setup after defining the Accounting flexfield while defining Set Of Books(SOB)
This account will be automatically gets credited or debited(if any loss is made) after making all necessary adjustments with the remaining balance
Hi All,
Please correct me, if Iam wrong.

Thanks & Regards,
Sreeeeeee......

[Murthyoracle]

Hi

In addition to above, Retaining Earning Account is Mandatory while Creating of SOBs. This will be used to calculate your Profit and Loss; Income and Expenditure statements. The difference amount of Income and Expenditure will stored in Retaining Earning Account. This will come into picture while you are preparing Year End process and you have to run the Concurrent Prgramme called as Close Income statement closing Journals and it will be effected in your balance Sheet. From here i have no clarity. Please go through Oracle User Guide with 'Close Income statement closing Journals". I think you will be clear.

If any updation please navigate me.

thanks and regards.