| Example of balancing by source of earnings |  |
| In this example, the following accounts are balanced:
Profit and Loss account | Debit/ Credit | Amount | Source of earnings account
Costs of Goods Sold | Debit | 400 | Operating Results
Sales Revenue | Credit | 1000 | Operating Results
Restructuring Charges | Debit | 50 | Extraordinary Results
If you use the Source of Earnings balancing method, when you run the Automatic Balancing of Profit and Loss Accounts (tfgld6202m000) session ERP LN creates the postings described here. To balance the Profit and Loss accounts:
Ledger account | Debit/ Credit | Amount
--- | --- | ---
Costs of Goods Sold | Credit | 400
Sales Revenue | Debit | 1000
Operating Results | Credit | 600
Restructuring Charges | Credit | 50
Extraordinary Results | Debit | 50
Related topics Year end processing |