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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Retained Earnings Account
Microsoft Dynamics GP (Archived)

Retained Earnings Account

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Posted on by Asmaa Saleh 280

i have in the Chart of Accounts 2 Accounts 1-Retained Profit (Loss) and 2-Profit (Loss) of the Year Which Account i Select when i make year end Closing as a Retained Earnings Account note:( the first year end close is year 2012 it is just one GL Entrey Contain the Balance of 2012 so i put the profits from all years in 1-Retained Profit (Loss) and the Profit of 2012 in Profit (Loss) of the Year ( the Second Year End Close is closing is year 2013 i worked on all the modules )

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    Community Member Profile Picture
    Community Member on at
    RE: Retained Earnings Account

    I can't see any issues having multiple RE accounts, I got few customers would like to segregate between last year Profit/Loss and cumulative Profit/Loss across the years.

    They simply create a journal before the yearend closing routine to clear out the "Last Year RE" to the "Accumulated RE" account and then they close the year to the "Last Year" RE.

    It is just a matter how would they need to present their statements and if they indeed have a need to present the current period apart of their previous years.

  • Suggested answer
    Mahmoud Saadi Profile Picture
    Mahmoud Saadi 32,738 on at
    RE: Retained Earnings Account

    Nothing more valuable to add up to Mr. Frank comments above. Although, I may find it essential to mention that the "Retained Earnings" is a balance sheet account  to which you transfer all the net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders' equity on the balance sheet.

    Profit and loss accounts may vary according to the operation of the business, and therefore, vary from one company to another. You may find a (Gain or loss on sale assets). These profit and loss accounts have a posting type (Profit and Loss) and a (Credit) typical balance.

    In your case, you may refer to your chart of account to better understand the design of it rather than considering the (description) which might be a bit misleading.

    Your feedback is highly appreciated,

  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,527 Super User 2025 Season 1 on at
    RE: Retained Earnings Account

    You should have only 1 GL account to use as your Retained Earnings account, unless you close to multiple, divisional retained earnings accounts.  What is your 'Profit (Loss) of the Year' used for?  GP doesn't store current year retained earnings.  That figure is calculated as the sum of all the Profit & Loss accounts for the current year.

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