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    Bernardo Andres Neira
    Retained Earnings Prior and Retained Earnings Current...
    Topic posted July 14, 2017 by Bernardo Andres NeiraGold Medal: 3,500+ Points, tagged Balance Sheet, Cash Flow, Income Statement 
    496 Views, 9 Comments
    Title:
    Retained Earnings Prior and Retained Earnings Current movement behavior
    Summary:
    Retained Earnings Prior and Retained Earnings Current movement behavior
    Content:

    Hi, while trying to configure the Changes of Equity report I started to notice a strange behavior, at least for me, regarding the two accounts mentioned on the summary 

    While I agree that the Retained Earnings Current should have an Opening Balance movement, the value in the Closing Balance or Total Movements for every month should only be the value coming from the Net Income account, I think there is a movement missing that would cancel out that opening balance because that account should start from scratch every year the same way flow accounts work. 

    Also I don't understand how the Retained Earnings Prior account work since it should keep it's original Opening Balance but also have a different movement where the closing balance from the Retained Earnings should go, could you explain this behavior ?? I can't find any documentation on how this values are getting calculated, is it also normal that if I input and Opening Balance Adjs movement on the Retained Earnings Prior account it gets copied to the Retained Earnings account ?? 

    Please check the screenshot with the examples to the first two questions (with Retained Earnings I meant Current, my bad)

    Thanks 
     

    Image:

    Comment

     

    • Ganesh Nellayappan

      Hi Bernardo,

      FCCS_Retained Earnings = Retained Earning Prior + Retained earning Current

      Retained Earning Prior / Opening Balance = Closing Balance of Retained Earning from Previous Period or Year.(not retained earning current)

      Thanks

      • Elina Heinonen

        Hi,

        For Retained Earning Prior account / Opening balance - I always get the opening balance from previous year - what is wrong in my application? How I could get opening balance from previous period?

        What change movement member should I use? 

        Br Elina

    • Ganesh Nellayappan

      I hope this doesn't happen. Probably as you state issue could be in movement dimension.

      For PL Account , Movement member has to be Changes in Net Income(FCCS_Mvmts_NetIncome)

      Validate it once.

      Regards,
      Ganesh Nellayappan

       

       

    • Elina Heinonen

      Yes, I have FCCS_Mvmts_NetIncome on RE current account and this is ok.

      But if I input manual change to RE prior account in the middle of year, it is not transferred to next period. That is my problem.

      Another problem is current account, should it be transferred automatically to prior account in the beginning of next year or not?

      Br Elina

      • Bernardo Andres Neira

        Also check the View dimension

        If you choose Periodic the Opening Balance should be from the prior period, If you choose YTD the Opening Balance should be december from the prior year

        • Elina Heinonen

          Yes that is true, but my problem is that if I choose periodic wiew, opening balance for retained earnings prior do not come from previous period although for all other balance sheet accounts it comes from previous period in periodic view.

          My question is : are you using system generated account for retained earnings prior or do you have self-made account? I am using system generated account and parameters for that are not possible to be changed.

    • Ganesh Nellayappan

      Opening Balance Value should not be modified at all as it is always calculated from Previous year or

      If you want to enter /modify Opening value in mid of the year , then use the Opening Balance Adjustment.

      Regards,

      Ganesh Nellayappan

       

      • Elina Heinonen

        In that case I am trying to input change movement for retained earnings prior - and it is not coming to the opening balance of next month.

        I always use opening balance adjustment for manual entry.

    • Ganesh Nellayappan

      Hope the period is consolidated. If even after consolidating you have the same issue, please log SR with support to check the dimension members.

      I don't think it is a issue here with product.