| adjustment to annual net income (EC-CS) |
An adjustment to annual net income consists of two posting lines that are created by the SAP system.
One of these is posted to the retained earnings item on the balance sheet, the other to the annual net income transfer item at the end of the income statement.
The adjustment is made when a document is posted, if the balance of all the (normal) posting lines that affect the income statement in the document is not equal to zero. The difference is thereby cancelled out fully.
This entry occurs only if the appropriation of retained earnings is shown as part of the balance sheet.