ERPstuff - Oracle EBS Community

Hai...

This is Srinivas from Hyd'Bad.

i've one Problem.

when we are creating the SOB. There we've to give the Retained earnings. at that time, system will create one JE. what is that JE.

After year ending some profit or loss will be come. after closing the lost period in particular year. system will generate the JE Automatically, what is that JE..


The above two Question is very IMP for Interview point of view.... also....

am abiding for ur repay...

Why are you saying in the first scenario system will create one entry. When you close the year, all the Income and expense accounts balances will be transferred to this retained earnings and next year PL accouts will start with zero.

Hi Srinivas,
I dont think there is a journal entry created when you enter Retained Earnings account while defining SOB. At the end of year the profit/loss amount gets posted to the Retained Earnings account and there will be a JE. This same gets carried to the Balance sheet.
Plz correct me if Im wrong.
Regards,
Bala.

Expenses A/c Dr.
Retained Earning A/c Dr.
To Revenue A/c Cr.

This above entry for Profit Transferring to retained earnings

Expenses A/c Dr.
To Retained Earning A/c Cr.
To Revenue A/c Cr.

This above entry for Loss Transferring to retained earnings

Note: These entries are automatically created by the program when year is end process is executed

Oracleapps1983:

Please confirm your example. To transfer profit to Retained earnings account, original revenue account should be debited. Otherwise origianl account will be doubled.

1) At the year retained earlning is automatically transfered you dont need to transfer any entries

2) There is an option where u can create journals for balance sheet & P&L incase if you want those to be created explicitly