ISTech Support Forum

ISTech Support Forum
http://www.istechforum.com/YaBB.pl
Evo-ERP and DBA Classic >> Accounting >> reverse year end close into Retained earning
http://www.istechforum.com/YaBB.pl?num=1178658505

Message started by Laura Oliver on 05/08/07 at 14:08:25

Title: reverse year end close into Retained earning
Post by Laura Oliver on 05/08/07 at 14:08:25

Is there anyway to reverse the YEAR END RETAINED EARNINGS?

Mid March I accidentaly set up a brand new bank account with the GL type E. (of course it is really an ASSET account not an Expense account!)

Our year ended 3/31/07 and I ran the Fiscal YE routine, without realizing that I had the wrong GL type assigned to the new bank account

The 3/31/07 balance sheet is correct. But the 4/30/07 balance sheet only shows the April interest.

Where did my money go?
This of course iwll change my retained earnings....but how??

Any and all help appreciated.

Title: Re: reverse year end close into Retained ear
Post by cathyh on 05/08/07 at 15:16:19

Your balance in the bank account was zeroed out as an expense account.
Here is what we did when an asset account was changed to an expense account and then we ran YE (we didn't know it had been changed):

I would make a copy of your company to test this in to see if it will fix your problem

Leave the account as an expense account (E) and do a journal entry dated in the past year (3/31/07) between the in error expense account (a credit) and an asset or liability account (debit), using what should be the YE balance as the amount. Pick an account with very little or no activity so that the transaction is visible.
Post the transaction.
Change the account to an asset account, and do another JE between that account (debit) and whichever asset or liability account you used in the previous transaction, dated 3/31/07, and post.

Year end balances and retained earnings should be correct.
Hope this solves your problem. :)

Title: Re: reverse year end close into Retained earning
Post by Laura Oliver on 05/08/07 at 15:44:12

You are so smart!!!
I thought I had a disaster on my hands, but with your help, it was a 2 minute fix!
Thank you, Thank you, Thank you.

Title: Re: reverse year end close into Retained ear
Post by cathyh on 05/08/07 at 16:02:20

I wish I could take credit for it , but it was my very smart accounting wizard, Donna that deserves the credit. I'm glad it worked for you! :D