We maintain two types of Accounts and both are used differently in closing procedure. For balance sheet, the balance is carried forwarded to the same Account in the next year. But, in case of profit and loss statement, balance is carried forward to a retained earning account in SAP and the profit and loss Account is set to zero. When you define retained earning account in … [Read more...] about Retained Earning Account – Carrying Forward of Profit / Loss Account in SAP