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Dynamics 365 Community / Forums / Small and medium business | Business Central, N... / Retained earnings adju...
Small and medium business | Business Central, N...
Suggested Answer

Retained earnings adjustment

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Posted on by Dean 135

We have a new BC installation. During the installation, some prior year transaction were entered for a period of time. We now realise that we need to close the prior year. Unfortunately, the prior year will close to retained earnings, throwing our accounts off. Is there a means to adjust retained earnings to enable the prior year close with no impact to our present year?

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  • Suggested answer
    Inge M. Bruvik Profile Picture
    Inge M. Bruvik 1,111 Moderator on at

    Could you reverse the prior year transactions?

    You could also post correction on and ultimo date. That will not affect the net change for the year - only the balance.

  • Suggested answer
    Community Member Profile Picture
    Community Member on at

    Dean,

    If one makes a mistake in a prior year, I teach my customers to go into the Prior Year, make a correction General Journal entry and post. Then rerun the Close Income Statement. In your case, you have not closed the Income Statement so you can proceed and the Retained Earnings should reflect the corrected entry. Don't forget to Close Accounting Period.

    Thank you,

    Steve

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