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Creating New Ledger - Error Encountered: Your Retained Earnings Account must be a balance sheet account (Doc ID 2101880.1)

Last updated on OCTOBER 08, 2022

Applies to:

Oracle General Ledger - Version 12.0.6 and later
Information in this document applies to any platform.


When attempting to create a new Ledger in Accounting Setup Manager, the following error is displayed on the page. The Retained Earnings account is having the correct 'Ownership' type at value set level.

The issue can be reproduced at will if for any new ledger a new Chart of Accounts is used, so the Html page would have to create the code combination for the Retained Earnings account.

Note: attempting to create new code combinations in the form (Setup > Accounts > Combinations) works properly, the codes get created with the right account type.


Retained Earnings Account Value should be a Balance Sheet Account


1. General Ledger Superuser
2. Accounting Setup Manager
3. Create a new Ledger, assign Retained Earnings(RE) account
4. See the error, find out the Retained Earnings code combination would be having an incorrect type of 'Expense'


 New ledger creation.


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