| # Balancing methods for Profit and Loss accounts When you close the financial year, you can use the Automatic Balancing of Profit and Loss Accounts (tfgld6202m000) session to clear Profit and Loss accounts and post the total balance to the Retained Earnings account. In the Company Parameters (tfgld0503m000) session, you select the balancing method for the Profit and Loss accounts. The following balancing methods are available: Total All Profit and Loss accounts are collectively cleared against the balancing account that you select in the Company Parameters (tfgld0503m000) session and the total amount on the balancing account is posted to the Retained Earnings account. The profit and Loss accounts are not individually cleared. Individual Accounts The Profit and Loss accounts are individually cleared against the Retained Earnings account. Source of Earnings Each Profit and Loss account is individually cleared against the related Source of Earnings account. You can use this method to see how the total profit for the year is composed, for example, of operating profit, extraordinary profit, and so on. Related topics Source of earnings accounts - setup Example of balancing by source of earnings Year-end processing |