Setting up Multiple Retained Earnings Accounts

Problem Details:

How to close to different Retained Earnings accounts at year end



There are 3 types of accounts in the GL:  Balance Sheet, Income Statement, and Retained Earnings.  Any number of retained earnings accounts can be created, however, only one default retained earning account can be set.  This is done in GL Setup / Options on the Accounts tab.  This account then becomes the retained earnings account that all Income Statement accounts close to at year end.  This can be seen in GL Accounts / Accounts on the Detail tab.

However, if multiple segments are in use for defining GL accounts, then these segments can be used to close different Income Statement accounts to different retained earnings accounts. An account with only the account segment (4000) can only be closed to the default retained earnings account.  But accounts with other segments (4000-100) can be closed to any number of RE accounts. For example, by using segments, an income statement account 4000-100 can close to a retained earnings account 3500-100 or RE account 3550-100 or account 3570 depending upon setup.

In GL Setup / Options on the Segment tab, identify which segments are to be used in closing.  Then in GL Setup / Segment Codes, specify a closing account for the segments if it is to be different than the default retained earnings account.  In GL Accounts / Accounts on the Detail tab, in the 'Close by' box, the default retained earnings account is identified. If the Segment value is changed, the retained earnings account will be update with the retained earnings account specified in GL Setup / Segment Codes.

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