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Reclass for difference between TB and P&L

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Posted on by Yin Mon Pyone

Dear Experts,

When I checked TB and P&L for Year 2020, I found difference amount 13.11 between Net Profit of TB and P&L.

The difference was brought forward from 2017 and 2018.

By checking against TB and P&L, difference found in Cost of sales (0.25), Stock Written off (7.86) and Provision for Stock Written off (5) each

(P&L is more than TB)

Retain earning shows as credit 13.11 in TB for YA 2020.

In this case, How do I reclass for those differences?

I have run closed income statement multiple times. There is no more outstanding entries to run.

Looking forward to hearing your best advice.

Regards,

Sweety

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Community Member Microsoft Employee on at

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RE: Reclass for difference between TB and P&L

Sweety,

Sorry for delay. I took some needed extended time off. If you cannot locate the exact entry, since the amount is so small, I would:

1. Run Close Income Statement for Year 2020 to make sure nothing is present.

2. If no entry for 13.11 appears, then in the Balance Sheet I would Debit the 13.11 out of Current Year Earnings and Credit Accumulated Profit/(Loss).

Hope this helps.

Thanks,

Steve
Yin Mon Pyone 4 on at

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RE: Reclass for difference between TB and P&L

Dear Steve,

Thanks for your prompt reply.

It is difficult to trace which entry was causing the difference? There is no exact amount with transactions.

There was no direct posting to retain earning account.

If I want to reverse, should I use Accumulated Profit & Loss account or Retain earning account ?

Please advise.

Regards,

Sweety
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Community Member Microsoft Employee on at

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RE: Reclass for difference between TB and P&L

Sweety,

So the Close Income Statement is good, you said, therefore the amounts have been booked to Retained Earnings from the Income Statement accounts. Yet, you noted Retained Earnings has an extra manual credit of 13.11 in Fiscal Year 2020. Seems like someone manually booked this entry when booking possibly the adjustments and did not let NAV Close Income Statement on its own. Can you trace the 13.11 entry? Is it Credit Retained Earnings -13.11 and Debit the 3 accounts you noted in the Income Statement?

If you want to reverse the 13.11 I would reverse the entry and offset to the G/L Accounts noted on the entry. Note that this difference I would not book in 2020 since the year is closed but 2022, say January. The issue has been carryforward all this time and I want to correct in the open Fiscal Year.

Thanks,

Steve