UNDERSTANDING posting key AND Retained EARNINGS account

Posting key is a two digit numeric code used for posting a transactions. Posting key determines debit or credit of the transactions, type of accounts to be used ,field status of the transactions.

Some of the standard posting keys are given below and these are predefined in SAP.

Retained Earnings account is configured in order to carryforward profit and loss balances from one financial year to next financial year.

DEFINE RETAINED EARNINGS ACCOUNT

T CODE:OB53

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