Your company’s Retained Earnings are your accumulated net income, or the revenue you keep after paying off expenses for the year. Planning Maestro helps you calculate Retained Earnings and roll them into an equity General Ledger account. You can use Planning Maestro to manage your Retained Earnings in three main ways:
1. GL Source – You can enable or disable Retained Earnings calculations for your GL Source(s).
2. Retained Earnings default Dimension Members – While deploying a Plan or Cube, you can select which Dimension Members your Retained Earnings calculation is linked to.
3. Balance Sheet Report – You can run a Balance Sheet report that displays your asset, liability, and equity accounts, including Retained Earnings and CNI (Cash Net Income).
Note: To navigate to this settings page, please follow these instructions for Redeploying your plan:
Retained Earnings Calculations for GL Sources
Some GL (General Ledger) systems calculate Retained Earnings on their own; others do not. If yours does not, you can set up Planning Maestro to do Retained Earnings calculations for you.
- For GL Sources that do calculate Retained Earnings, in the Retained Earnings Calculation column, make sure the option Enabled is selected.
- For GL Sources that do not calculate Retained Earnings, click on the dropdown menu in the Retained Earnings Calculation column and select Disabled.
Retained Earnings GL Account
Your Retained Earnings calculation acts as any other line item in Planning Maestro; it is linked to a specific Member of each of your Dimensions (for example, one Account Number, one office, one department, one program, etc.).
As you deploy a Plan or a Cube, you can select which Dimension Members your Retained Earnings calculation is linked to. When you run a Balance Sheet report or any other report that includes equity, you can only see Retained Earnings when your view is filtered for those Dimension Members.
Please Note: When you select an Account Number from your Account Number Dimension for Retained Earnings, you can only select one of your Equity accounts.
Example: Retained Earnings is linked to the Retained Earnings GL Account for the Account Number Dimension (an Equity account) and the default Member of all other Dimensions:
Retained Earnings in Your Balance Sheet
In the Reports module, you can run a Balance Sheet report to review your asset, liability, and equity accounts, including Retained Earnings and CNI (Cash Net Income) for the year.
Please Note: When you preview a Plan in the Data Modeler, the Retained Earnings calculation you see there only displays retained earnings from your Actuals. In Planning, you can review Retained Earnings from your Actuals or projected Retained Earnings for each budget Version (which will help you scenario-plan).