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Document136510.1

GeneralLedgerFAQforRetainedEarnings(REA)(DocID136510.1)
InthisDocument
Purpose
QuestionsandAnswers

1.HowdoesRetainedEarningsgetcalculatedinOracleGeneralLedger?

2.WherecanIfindmoreinformationonYearEndClose?

3.Whenyoutrytoopenthefirstperiodofthenewyear,youaregettinganerrormessageinmodulegloire.Whatis
causingthiserror?

4.WhereinGeneralLedgerdoyouassigntheRetainedEarningsaccounts?

5.Canyouchangetheretainedearningsaccountinthedefinesetofbooksform?

6.Whataretheconsequencesofopeningthefirstperiodofthenewyearbeforeclosingthelastperiodoftheprevious
year?

7.PostingJournalstopriorPeriods

8.Howaremanuallyenteredbeginningbalancestranslatedforretainedearning?

9.UnabletoOpenthefirstperiodinthenextfiscalyearbecauseGLOOAPOpenPeriodfailswithSHRD0180

10.CantheIntercompanySegmentbeusedtotrackRetainedEarnings?

11.WhatisRetainedEarningscalledinPublicSectorFinancial?

12.WhatAccountTypeshouldbeusedfortheRetainedEarningsAccount?

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Feedback

References

APPLIESTO:
OracleGeneralLedgerVersion11.5.10.2andlater
Informationinthisdocumentappliestoanyplatform.
ConcurrentProgram:GLYCCJ2CloseProcessCreateIncomeStatementClosingJournals
Executable:GLOOAPOpenPeriod
Form:GLXSTBKS.FMBSetofBooks

PURPOSE
ToaidusersandsupportanalystsinRetainedEarningsAccountingrelateddoubtsandproblemresolution.

QUESTIONSANDANSWERS
1.HowdoesRetainedEarningsgetcalculatedinOracleGeneralLedger?
a)GeneralLedgerautomaticallypoststhenetbalanceofallRevenueandExpenseaccountsfromtheprioryear
totheRetainedEarningsAccount(REA)whenyouopenthefirstperiodofafiscalyear.
GLwillautomaticallyupdatetheRetainedEarningsAccountsbalancesasneeded,whenyouenterandpostnew
journalentriestotheprioryear.
TheRetainedEarningAccountbalanceforanewyeariscumulativeandistheresultof:
thecurrentbalanceofRetainedEarningAccount+netbalanceofallRevenueandExpenseaccounts
b)Ifyouhavemultiplecompaniesorbalancingentitieswithinasetofbooksorledger,GeneralLedgershould
automaticallycreateoneRetainedEarningsAccountcombination(whendynamicinsertionenabled)foreach
companyorbalancingentityandsecondarytrackingsegment(dependingontheversionandsetup),to"transfer"
thebalancesofthecorrespondingincomestatementaccounts.
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c)This"transfer"occursdirectlyandautomaticallywithnojournaling.
IfanauditablejournalentryisneededatyearendyoucansubmittheCreateIncomeStatementsClosing
Journalsprogram.
SeeGeneralLedgerUserGuide:YearEndCloseChecklist.
GeneralLedgercan(sincerelease11.5.2)generate2typesofjournals:
IncomeStatementClosingJournals:Thisjournalclosesalloftheincomestatementaccountsagainstthe
retainedearningsaccount.
BalanceSheetClosingJournals:Thisjournalpostsallassetandliabilitybalancestoaclosingaccountthat
youspecify.
SeeDocument151312.1formoreinformation.

2.WherecanIfindmoreinformationonYearEndClose?
SeeGeneralLedgerUserGuide,JournalEntry>YearEndCloseChecklist
Also,seeDocument66532.1GLOracleGeneralLedgerYearEndClosingProcess,inMyOracleSupport.
Supportrecommendednote:PeriodCloseAdvisor:EBusinessSuite(EBS)(Document335.1).

3.Whenyoutrytoopenthefirstperiodofthenewyear,youaregettinganerrormessageinmodulegloire.
Whatiscausingthiserror?
Theopenperiodprogramwilltrytocreate/accessretainedearningsaccountcombinationsforALLbalancing
segmentvaluesandsecondarytrackingsegments(dependingontheversionandsetup).
Thesesegmentvaluesmustbeenabled,postable,andnotexpired.
Iftheaccountcombinationdoesnotexist,anddynamicinsertionisnotenabled,itmustbemanuallycreatedon
theaccountcombinationform.Ifdynamicinsertionisenabled,theremustbenosecurityrulesorcrossvalidation
rulesthatpreventthecreationoftheaccount.
Examplefromthelogfile:
SHRD0015:fdfkfaFFSEGSIDfailed:
SHRD0180:gloirePerformingaction>>RetCCIDwhichfailedvalidation,doesnotexist

4.WhereinGeneralLedgerdoyouassigntheRetainedEarningsaccounts?
TheRetainedEarningsaccountcodecombinationisassignedintheSetofBooksdefinitionorintheLedger
definition(AccountingSetupManager).
In11i:UsingGeneralLedgerSuperUser,navigatetoSetup/Financials/Books.
EnteryourRetainedEarningscodecombinationforyoursetofbooksatthebottomoftheform.Enteronlyone
retainedearningsaccountcodecombination.
InR12thissetupisfoundintheAccountingSetupManagerundertheYearEndProcessingfield.
Whenyouopenthefirstperiodofyourfiscalyear,GeneralLedgercreatesretainedearningsaccount
combinationsforeveryvalueyouhavedefinedinyourbalancingsegmentandwillusethiscodecombinationasa
templatetocreatethosecodecombinations.Whennewcompanysegmentsareaddedtheretainedearnings
combinationshouldbecreatedasyouopenthefirstperiodofthenewyear.

5.Canyouchangetheretainedearningsaccountinthedefinesetofbooksform?
Yesbutawarningmessageisdisplayed(since11i.GL.H)becauseitcancauseproblems.
Ifyouchangetheaccount,whenyouopenthefirstperiodofthenextyeartherevenueandexpenseaccounts
willcloseouttothenewaccount.Howevernoactionwillbetakenonthebalancesintheoldaccount.Youwould
havetomakeamanualjournalentryinthepreviousyeartomovetheexistingbalanceifyouwantedittobein
thenewretainedearningsaccount.
PleaseseeDocument1082169.6formoreinformationregardingtheREAchange.
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6.Whataretheconsequencesofopeningthefirstperiodofthenewyearbeforeclosingthelastperiodofthe
previousyear?
TheOracleGeneralLedgerapplicationencompassestheyearendclosingprocessintotheOpen/ClosePeriod
program.Toopenthefirstperiodofanewyear,theGLOIREprocessintheOpen/Closeprogramcompletesthe
transferofallbalancesmarkedRevenueorExpenseinthecodecombinationtabletotheRetainedEarnings
accountforthatbalancingsegment.Theprogramthensetsthebeginningbalancesfortheseaccountstozerofor
thefirstperiodofthenewyear.Thisprocessdoesnotcreateajournalentry,itsimplyupdatestheaccount
balances.
SeeDocument149999.1formoreinformation.
Note:Forcurrency=STAT,therevenueandexpenseaccountbalancesdoNOTtransferto
retainedearningsatthebeginningofthenewyear.Howeverjustlikeothercurrencyvalues,the
beginningbalancesforrevenueandexpenseSTATaccountsaresettozeroforthefirstperiodof
thenewyearandifaccounttypeisabalancesheetaccount,thebalanceisretainedacrossyears.
Youcanopenthenextfiscalyearbeforethecurrentfiscalyeariscomplete.Thisallowssubledgerprocessingto
continueonanormalbasis.Whenajournalispostedtoaperiodpriortothe"latestopenperiod",theposting
programrollsforwardactualbalancestoallperiodseveropened,thusupdatingtheretainedearningsbalance
fortheprioryear.
Note:Openingperiodsprematurelycanresultinpostingperformancedegradation.Thiscanoccur
becausethepostingprogramrollsforwardallaffectedaccountbalancestoallopenperiods.
DuringtheOpen/Closeprogram,theGLOIREprocessverifiesavalid,enabledretainedearningsaccountexists
foreachbalancingsegmentvaluewhichhadanyactivityduringtheyear.Theprocessneedsthisretained
earningsaccountevenifallthetransactionsforabalancingsegmentvaluenettoanendingbalanceofzero.
Beforeopeningthefirstperiodofanewyear,thus"closing"theprioryear,performthefollowingsteps:
a.DatabaseBackup
b.Verifythatthenextcalendaryearandperiodsaredefined.
c.Runthereportsnormallywhenaperiodisclosing.
Forrelease10.7'CloseofFiscalYear'thereisnofeaturetoautomaticallygenerateajournalentrytocloseall
theincomestatementaccountstotheretainedEarningsAccount,thisfeatureonlyexistssincerelease11.0.
Aftercompletingtheabovesteps,openthefirstperiodofthenewyear.Oncethisprocesscompletes
successfully,runatrialbalancereportforthenewyearandverifythatalloftherevenueandexpenseaccounts
haveabeginningbalanceofzero.Ifthebalanceisnotzerothenyoumaybefacingaproblemofmisclassified
accounts.

7.PostingJournalstopriorPeriods
Whenpostingtoapriorperiod,OracleGeneralLedgerautomaticallyupdatesthebeginningbalancesofallthe
followingperiods.ForprioryearadjustmentsthiswillrollforwardtheP&Lbalancestotheretainedearnings
whenitreachestheyearend.Makesureretainedearningsaccounthasnotsubsequentlybeendisabled.
SeeDocument1010243.7formoreinformation

8.Howaremanuallyenteredbeginningbalancestranslatedforretainedearning?
Itdependsonhowtheprofileoption'GL:Owner'sEquityTranslation'isset.
Responsibility:SystemAdministrator
Navigation:Profile/System
ProfileOption:GL:Owner'sEquityTranslation
ThiscanbesettoYTDorPTD
SettoYTD:
FirstperiodTranslation,thetranslatedamountfortheretainedearningwillequal'zero'.
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SubsequentTranslationswillhaveatranslatedamountfortheretainedearningsaccount.
SettoPTD:
YouwillhaveaTranslatedamountfortheretainedearningsinthefirstperiod.
SeeDocument119581.1formoreinformation.

9.UnabletoOpenthefirstperiodinthenextfiscalyearbecauseGLOOAPOpenPeriodfailswithSHRD0180
DuringtheOpen/Closeprogram,the"gloire"processwillverifythatthereisavalid,enabledretainedearnings
accountforeachbalancingsegmentvaluewhichhadanyactivityduringtheprioryears.Theprocessneedsthis
retainedearningsaccountevenifallthetransactionsforabalancingsegmentvaluenettoanendingbalanceof
zero.
SeeNote:1966123.1formoreinformation.

10.CantheIntercompanySegmentbeusedtotrackRetainedEarnings?
No.
TheSecondaryTrackingfeaturecanbeusedtotrackretainedearnings.
TheoptionalSecondaryTrackingSegmentqualifierdesignatesanothersegmentinyourchartofaccountsin
additiontoyourbalancingsegmenttotrackRetainedEarnings,CumulativeTranslationAdjustment,and
UnrealizedGainsandLosses.Thissegmentcanbeanysegment,exceptthebalancingsegment,naturalaccount
segment,orintercompanysegment.Thissegmentcanbethesameasyourcostcentersegment.
SeetheOracleGeneralLedgerImplementationGuideandGeneralLedgerUserGuideformoreinformationon
this.

11.WhatisRetainedEarningscalledinPublicSectorFinancial?
ForPublicSector"FundBalance"istheRetainedearnings.

12.WhatAccountTypeshouldbeusedfortheRetainedEarningsAccount?
TheRetainedEarningsAccountTypeshouldbedefinedasOwnership.
Ifitisincorrectlydefinedthenthiscanresultincorruptbalances.
SeeDocument1435136.1WrongBalanceForRetainedEarningsAccountAfterGlbalfix.

CommunityDiscussions
Stillhavequestions?UsetheliveMyOracleSupportGeneralLedgerCommunitywindowbelow,tosearchforsimilar
discussionsorstartanewdiscussiononthissubject.

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REFERENCES
NOTE:1082169.6WhatIsTheImpactIfTheRetainedEarningsAccountIsChangedAfterGoingThroughaYear
NOTE:1010243.7PostingJournalstopriorPeriods
NOTE:1966123.1Unabletoopenthefirstperiodforthenextfiscalyear
NOTE:119581.1Howaremanuallyenteredbeginningbalancestranslatedforretainedearnings
NOTE:149999.1WhatistheBehavioroftheGeneralLedgerYearEndClosingProcess
NOTE:151312.1GeneralLedgerClosingJournals(IncomeStatementandBalanceSheet)Setup&UsageWhitePaper
NOTE:335.1PeriodCloseAdvisor:EBusinessSuite(EBS)
NOTE:66532.1OracleGeneralLedgerYearEndClosingProcess
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