Retained Earnings & Fiscal Year in Enterprise Pro explained:

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M1EnterpriseTech
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Retained Earnings & Fiscal Year in Enterprise Pro explained:

Post by M1EnterpriseTech »

To set the Fiscal Year start date:

Go to Setup from the home ribbon| Ledger Settings. Scroll to the bottom left corner of the age to enter Fiscal Year begin date.

This date will define when the shop's fiscal year starts. In the example below, the fiscal year start date is set to 01/01:( year is 2016 even though not entered)

RETAINED EARNINGS:
(Important Note: Retained Earnings ledger account is system generated. If you see two Retained Earnings accounts on a Balance Sheet report then one was manually created by the shop. The system generated Retained Earnings account will not be able to run a Journal ( grayed out) whereas the shop created Retained Earnings account can)

Retained Earnings are calculated from business start date up to fiscal year start date. The fiscal year is determined by date on the balance sheet report. For example, if we run a balance sheet report as of today (2016/03/18). The fiscal year will be Jan 1st, 2016 to March 18, 2016. The retained earing will calculated from business start date to Dec 31, 2015. Now say we run the balance sheet as of 2015/10/31. The fiscal year will be Jan 1st, 2015 to Oct 31, 2015. The retained earning will be calculated from business start date to Dec 31, 2014.

To make an adjustment to the Retained Earning, you would need to make a GL Adjustment to an Income/Revenue account in the previous year.
Enterprise Support Specialist
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