Accounting: Retained Earnings and P&L

Created by Laura Gannon-Berg, Modified on Thu, 18 Jul at 6:21 PM by Laura Gannon-Berg

Retained Earnings and P&L showing more than one year.

Q:  Our accountants are trying to get proper numbers for the May 31 year end. The system is producing reports that

            1. did not close out the 2021 P&L into retained earnings and;

            2. are giving year to date totals on the P&L that incorporate more than one year.

This is going to end up costing my client additional accounting fees as they will now have to do adjustments that they should NOT have to do.

Can someone please look at this!

A:  They will have to reopen the year.

Go to ADMIN -> FIRM -> SETTINGS -> FEATURES

Click on "End of year adjustment only zero income and expenses (not retained earnings)". button.

Close the year again.

If this was turned on, in their books, does not post anything to retained earnings at year end.