Balance Sheet Profit/Loss or Annual Surplus/Deficit for Capital Corporations
Discrepancies have occurred between your reported annual surplus/deficit or balance sheet profit/loss.
You must first decide whether you want to report a Balance Sheet Profit/Loss or an Annual Surplus/Deficit in your balance sheet.
Below, I will present you with both solution approaches, each addressing one of the subject matters.
Variant 1 – You report a Balance Sheet Profit/Loss:
1. The report line item Results Application is a mandatory report line item and must be fully processed. (As you activate report line items, this is explained in the attached instructions.)
2. The determined annual surplus/deficit from the Commercial Code (GuV) is entered in the Results Application.
3. Everything that the annual result includes, e.g., profit and loss carryforwards, is recorded in the Results Application and is used to calculate the balance sheet profit/loss.
4. In the balance sheet, you must then populate the line item Balance Sheet Profit/Loss; the line items Annual Surplus/Deficit and Profit/Loss Carryforward should be left empty.
5. This is because, by definition, this position is a component of the balance sheet profit/loss.
Example
Annual Surplus/Deficit
+ Profit Carryforward from Prior Year (if applicable)
– Loss Carryforward from Prior Year (if applicable)
+ Distributions from Capital Reserves
+ Distributions from Retained Earnings Reserves
– Allocations to Retained Earnings Reserves
────────────────────────────────────
= Balance Sheet Profit/Loss
6. You must verify that the Balance Sheet Profit/Loss position (Results Application) equals the Balance Sheet Profit/Loss position (Balance Sheet).
Variant 2 – You report an Annual Surplus/Deficit:
1. The Results Application is not required and must therefore be deactivated. (How to deactivate report line items is explained in the attached instructions.)
2. If no Results Application is activated and you wish to report an Annual Surplus/Deficit instead, the result from the Commercial Code (GuV) is taken and entered in the balance sheet under the Annual Surplus/Deficit line item.
3. In the balance sheet, you must populate the Annual Surplus/Deficit and, where applicable, Profit/Loss Carryforward line items; the Balance Sheet Profit/Loss position, however, should be left empty.
4. You must verify that the Annual Surplus/Deficit position (Profit and Loss Statement) equals the Annual Surplus/Deficit position (Balance Sheet).
Please select one of these solution options and adjust your entries accordingly. The error message should then be resolved and the transfer should function properly..
