Prior year adjustment entry

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Posted on by Refeesh Ali

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hi,

i have ptroblem in my current year opeing balnace after year end procedure. the retain earinings account is not match with the openining balance of the current year.kinldy advice why its happening like that and advice me how can i adjust my retain earinings with prior year adjustment entry

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L Vail 65,271 on at

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RE: Prior year adjustment entry

Hi Refeesh,

Are you saying that your ending balance of last year doesn't match the beginning balance of this year?

Kind regards,

Leslie
Josh P 2,895 on at

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RE: Prior year adjustment entry

Once you have found the problem, you can open the year, and simply make an additional closing entry directly to retained earnings.
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Frank Hamelly | MVP... 4,029 Super User 2024 Season 2 on at

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RE: Prior year adjustment entry

There are multiple causes and multiple solutions - Bing or Google 'dynamics gp retained earnings balance incorrect after closing year'. Follow the advice in those articles to isaolate your cause and solution.

Good luck,
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Mahmoud Saadi 32,738 on at

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RE: Prior year adjustment entry

I would mostly think of incorrect posting setup for certain GL accounts ( Balance Sheet, Income Statement ) this would usually result with incorrect retained earning balance.

For instance, If an account is set up as a balance sheet account instead of an income statement account, the amount that is posted to retained earnings at the end year closing will be incorrect.