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Do inactive accounts play into the YE Close? inactive P&L accounts rolled into RE?

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Posted on by Renee Leung

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Do inactive accounts play into the YE Close? Will inactive P&L accounts with a balance be rolled into RE?

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RE: Do inactive accounts play into the YE Close? inactive P&L accounts rolled into RE?

Hello Mahmoud, Just wanted to ask a similar question but this time about Accounts where "Allow Account Entry" is unmarked (this is for version GP10). If the account is a P&L account, will that still close out to the Retained Earnings? What happens is that we have P&L accounts that cannot be marked inactive because they don't meet all the requirements and we want to make sure they're no longer used in transactions. So we thought about using the "Allow Account Entry" option.

And if it's a balance sheet account with meets those requirements you mentioned for inactivating the account, will the balance roll over to the next year?

Thanks!

Oumar, odiop

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Ian Grieve 22,784 on at

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RE: Do inactive accounts play into the YE Close? inactive P&L accounts rolled into RE?

I agree with Mahmoud. The inactive accounts still need to be handled the same as any other account with a balance.

You could journal the balance elsewhere before doing your year end close (the offset account will be for your accountant to determine) or allow the year end close to roll the balance into the retained earnings account.

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babubaskaran@outloo... 12 on at

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RE: Do inactive accounts play into the YE Close? inactive P&L accounts rolled into RE?

You can also use PSTL to combine these accounts to active account so that all the transactions transferred to the new account. And after doing this you can run the reconcile the financials.

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Mahmoud Saadi 32,738 on at

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RE: Do inactive accounts play into the YE Close? inactive P&L accounts rolled into RE?

I still believe that you're supposed to record their gains/losses in year end closing. Otherwise, you may consider a manual journal entry to clear these inactive P&L accounts accordingly.

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Renee Leung 6,775 on at

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RE: Do inactive accounts play into the YE Close? inactive P&L accounts rolled into RE?

A dept that is no longer in use as of mid-year. Since it was mid-year, there are balances in some of their p&l exp accounts.

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Mahmoud Saadi 32,738 on at

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RE: Do inactive accounts play into the YE Close? inactive P&L accounts rolled into RE?

Regardless of the technical methodology which can be taken in order to exclude inactive profit and loss accounts from year end closing, is it correct from an accounting point of view !

What is the case in which you need to exclude profit and loss accounts with a current balance from the end year closing ?

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Renee Leung 6,775 on at

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RE: Do inactive accounts play into the YE Close? inactive P&L accounts rolled into RE?

So how to best handle inactive p&l accounts? Clear them out via a JE? Which offset account?

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Mahmoud Saadi 32,738 on at

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RE: Do inactive accounts play into the YE Close? inactive P&L accounts rolled into RE?

Yes, inactive accounts with current balances are included in the year end closing, and rolled into RE. Furthermore, one thing to consider that Inactive accounts which meet the following criteria will be deleted;

No balance

No activity for an open period

No account history amounts

Not part of an allocation account

Not part of an unposted transaction

No multicurrency data

No transaction history records

Although, in GP 2013, you do have a choice to maintain inactive accounts.

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