Adjusting Retained Earnings

Before you complete the Year End Close function, one of the steps is to recalculate the retained earnings. Adjusting retained earnings finds the total of all charts from 4000 to 9998, posts that amount to the retained earnings chart (defined in System Control, usually 3011) balance, and zeros out the balance in the 4000 – 9998 charts. Only the balances are updated (a journal entry is not created).

After you make the final tax year adjustments you will want to recalculate the retained earnings again. This will allow you to keep charts 4000 – 9998 at a zero balance in preparation for the new accounting year. You can recalculate retained earnings as often as you need until you check the accounting year closed.

To adjust the retained earnings after year-end close,

1. Select GL then Chart of Accounts.

2. Press Shift+F5.

3. Click Yes/No to the prompts for recalculating the retained earnings.

For more information, refer to Chart of Accounts Overview.