ISTech Support Forum

ISTech Support Forum
http://www.istechforum.com/YaBB.pl
Evo-ERP and DBA Classic >> Accounting >> Balance Sheet - retained earnings problem
http://www.istechforum.com/YaBB.pl?num=1116644383

Message started by user on 05/20/05 at 18:59:43

Title: Balance Sheet - retained earnings problem
Post by user on 05/20/05 at 18:59:43

We are using v. 2002.4. GLeRedo, DDCHECK, and UPDATE have been used.

The "prior years retained earnings" are correct for Jan. to Nov. balance sheets. However, for the Dec. balance sheet, the YE posting for current year earnings is wrongly subtracted from the "prior years retained earnings."

For the Jan. balance sheet of the next year, the previous year's earnings are (as expected) added to the prevoius year's "prior years retained earnings." However, since the Dec. figure was wrong, the Jan. figure is also wrong. (In fact, the new Jan. figure equals the "prior year retained earnings" for Jan. to Nov. balance sheets of the previous year, since the previous year's earnings have simply been subtracted and then added back in.)

Thanks for any suggestions!

Title: Re: Balance Sheet - retained earnings problem
Post by Lynn Pantic on 05/21/05 at 05:07:01

If you are using GL-N, try running a GL-F balance sheet first. There is a problem with the GL-N Earnings calculation.

If you are using GL-F, are you actually out of balance? If not, then what makes you say the earnings is wrong? Is it different from the income statement?

Also may want to try UT-K-D and then GLEREDO again.

Title: Re: Balance Sheet - retained earnings problem
Post by user on 05/22/05 at 16:27:37

Thanks. We get the same error with GL-F and GL-N.

Balnce sheets for Jan. to Nov. of "two years past" are balanced. (For these, the prior year retained earnings are correct.) Then, the Dec. balance sheet (of "two years past") is not balanced, due to an error in the prior year retained earnings figure. The error is caused when DBA incorrectly subtracts the total 2nd past year earnings from the prior year retained earnings figure.

For "one year past" balance sheets (Jan. to Nov.) DBA correctly adds the "two years past" earnings to the Dec. "two years past" prior year retained earnings. However, the Dec. figure is wrong as explained above.

UT-K-D and another GLEREDO don't change anything.

Title: Re: Balance Sheet - retained earnings problem
Post by user on 05/25/05 at 12:10:20

I believe that I found the problem. In AD-A General Ledger Defaults, for GL Current earnings, the Help information states that "Net income(loss) is posted here when the Income/Expense accounts are closed."

In my situation, the Income/Expense accounts are not yet closed, so there is nothing posted in the GL Current Earnings account. My guess is that when this posting occurs, the amount will be added back into Retained Earnings for the 12/31 balance sheet, and everything will balance.

Title: Re: Balance Sheet - retained earnings problem
Post by Lynn Pantic on 05/25/05 at 16:13:39

I think you are correct. I know from conversations we had off the forum that you are trying to reconcile prior years in a separate company so I think you do need to run AM-B to get the data closed out and correct. Although the Help doesn't exactly describe what happens now, it is close enough that I suspect it is in fact the source of your problem.