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Kate Roses

Adjust retained earnings at all?

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Hi, one of our companies accounts were filed with some incorrect transactions last year. Its a foreign entity and this year we have made sure to sync their figures with ours however I can't seem to work out how to adjust the retained bought forward? All the other control accounts now balance...and I don't want to touch this year's profit. So how can I make the retained correct?

Thanks. 

  • 0

    Hi Kate - you can adjust the retained brought forward by entering a Previous Year Journal Entry and including a posting to a P&L account.  Whatever postings to P&L accounts you enter on the journal will then be adjusted to the retained earnings brought forward. 

    And ensure you don't include any of your control accounts in the journal, otherwise their balances will be affected.

    Of course whatever you post through a Previous Year Journal will affect your previous year figures, so you may need to re-produce your financial statements through the Prior Year versions of the reports.

    I recommend you try in a test company first.

  • 0 in reply to Steven Baker

    But be careful with previous year postings in any company that has "Enable Consolidation" ticked - you will probably get some unwanted values which need to be journalled out.

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