The Consolidation system is capable of stating retained earnings in two ways:

• retained earnings stated at the end of the income statement - common for both the corporate group and minority interest

• retained earnings stated on the balance sheet, split between group and minority interest

The appropriation of retained earnings encompasses

• the prior year’s net income carried forward
• distribution of dividends
• transfers to appropriations
• deductions from appropriations
• transfers to minority interest
• deductions from minority interest

The FS chart of accounts must be defined to accommodate the appropriations outline desired, and various selected FS items must be determined for the automatic postings.