Follow

Revenue and expense amounts are not transferred to Retained Earnings

Problem Description:
Revenue and expense amounts are not transferred to Retained Earnings.

Cause:
The Create New Year function in G/L Period Processing has not been run.

Solution:
To resolve the issue, run the Create New Year feature in G/L Periodic Processing:

  1. Make a full backup of the company database 
  2. Go to General Ledger, G/L Periodic Processing, Create New Year
  3. Click Process

The retained earnings account should now be updated with the revenue and expense amounts.

If there is an account that you expected to be closed out to retained earnings, but it was not - check to see if the Account Type is set to Balance Sheet by mistake.  If that is the case, you will need to manually close out the account and then change the Account Type to Income Statement to avoid the same problem in the next year. 

To manually close out an account, do a GL journal entry to transfer the balance of the account into the retained earnings account - and post into the CLS period.

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

Comments

Powered by Zendesk