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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Retained Earning Setup...
Microsoft Dynamics AX (Archived)

Retained Earning Setup for AX 2012

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Posted on by Community Member Microsoft Employee

Dear Support,

What setup i suppose to do to get the correct result after running Opening Transaction in Dynamics AX 2012?

The result after running Opening Transaction for 2018 i got is like below:

Total balance for P&L accounts for 2018 is 1000.000.

After Opening Transaction (Closing > Opening) balance for P&L account and retained earning account are:

- P&L accounts balance for 2018 = -1000.000

- Retained earning account balance for 2018 = 1000.000

- Retained earning account balance for 2018 = -1000.000

- Retained earning account balance for 2019 = 1000.000 (beginning)

what i expect for balance of retained earning is 1.000.000 in 2018, without create entry -1000.000 in 2018 and 1000.000 in beginning 2019.

Is there any setup i have to do for that result?

Please help.

Many thanks,

Yohana

- retained earning account balance for 2019 = -1000.000 (beginning)

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  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Retained Earning Setup for AX 2012

    Hi Yohana,

    From what you describe I can only see the issue that you have postings on the retained earnings account in 2018 that should not be there in my opinion.

    I do not know how they are created - either manually or automatically - and you should investigate them in detail.

    Everything seems to behave as in the standard application.

    Probably try to setup a small company in your demo environment and post a couple of expenses, then close the year and check the year end closing voucher.

    Best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Retained Earning Setup for AX 2012

    Dear Ludwig,

    answer your questions:

    1. Do you make use of posting definition or have you implemented some system modifications when it comes to the year end closing transactions? i dont use posting definition and there is no modification related to the year end closing transactions.

    2. Can you possible share the voucher that is created when you post the year-end closing? i put the voucher number for closing entries on Opening Transactions form on Voucher Number field.

    3. I am especially interested in the posting types that are used with the transactions that you mentioned above >> i use "Closing" posting type in retained earning main account. but the problem is still the same.

    please advice.

    Thanks

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Retained Earning Setup for AX 2012

    Hi,

    I believe that lines 2 and 3 should not be created in 2018.

    As you mentioned the profit or loss that is recorded on your P&L accounts will be transferred to the retained earnings accounts when you process the year-end closing. As a result, a posting equivalent to the profit or loss will be made on the retained earnings account on 1st Jan 2019.

    At the end of 2018 no transaction should occur on the retained earnings account.

    Do you make use of posting definition or have you implemented some system modifications when it comes to the year end closing transactions?

    Can you possible share the voucher that is created when you post the year-end closing?

    I am especially interested in the posting types that are used with the transactions that you mentioned above.

    Many thanks and best regards,

    Ludwig

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Retained Earning Setup for AX 2012

    Dear Ludwig,

    i didn't create any transaction in the retaines earning account. the balance of retained earning account in 2018 and 2019 were created automatically after ran Opening Transaction job.

    System create entries on 2018 to balance my BS and liabilities. but not just it, system also creates entries for close the balance in 2018 and create opening balance on 2019.

    i'm wondering whether there is any setup i missed. because as i know, when year end closing, system should not create closing entries for retained earning account and create opening entry in 2019.

    as my example below, lines 3 and 4 should not be created.

    - P&L accounts balance for 2018 = -1000.000

    - Retained earning account balance for 2018 = 1000.000

    - Retained earning account balance for 2018 = -1000.000

    - Retained earning account balance for 2019 = 1000.000 (beginning)

    Please advice.

    Thanks

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Retained Earning Setup for AX 2012

    Hi,

    I don't understand why you have to create a transaction in 2018 in the retained earnings account?

    Is it just to balance your BS asset and liabilities side or why a posting on this account has been made?

    Best regards

    Ludwig

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