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Evo-ERP and DBA Classic >> Accounting >> RETAINED EARNINGS
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Message started by carolg on 05/01/12 at 06:49:09

Title: RETAINED EARNINGS
Post by carolg on 05/01/12 at 06:49:09

We are constructing financial statements in Excel. Everything works fine except for the Retained Earnings - Current account. On the Balance Sheet it is not adding in the current profit for the period. So assets and liabilites do not equal It does not look like there is a Retained Earnings in the GL database. How does EVO get that number? It shows in GL-A but not in Trial Balance. GL Transactions does not have a field for R/E

Title: Re: RETAINED EARNINGS
Post by Kelloggs on 05/01/12 at 08:01:00

Evo/DBA uses the BKGLCOA to print the financial statements.
It does not "get" the amounts from the "GL Transactions."

The "Retained Earnings" is the sum of previous years profit/loss

If your financials are not balancing there is a utility to "redo" them
but I advice you to contact Lynn before running it : GLEREDO.RUN

:-X

Kelloggs

Title: Re: RETAINED EARNINGS
Post by Lynn_Pantic on 05/01/12 at 10:15:40

Retained Earnings (prior year) does have an account and balances but Current Year Earnings is recalculated by GL-F or GL-N every time you run a Balance Sheet so you can't do it in Excel unless you write a formula to do the same thing.

Title: Re: RETAINED EARNINGS
Post by lnikitas on 05/01/12 at 11:35:20

Thanks, Lynn. So when I look closer at our report, it looks like we could calculate the Retained Earnings calculation by totalling Assets and subtracting the Liabilties. Is that the calculation being used here - or, if not, could you explain the calculation so that we can reproduce it here? Thanks.

Title: Re: RETAINED EARNINGS
Post by Kelloggs on 05/01/12 at 11:51:38

lnikitas wrote:

Current Earnings!

>:(

Kelloggs

Title: Re: RETAINED EARNINGS
Post by Lynn_Pantic on 05/01/12 at 12:55:55

It is the net of all income and expense accounts for the current period. In theory your calculation should arrive at the same number but sonce you are using sort of circular logic, your method will NEVER be out of balance and therefore if there really was a problem with income or expense causing out of balane, you would never find it.

Title: Re: RETAINED EARNINGS
Post by lnikitas on 05/03/12 at 08:39:45

Lynn, what you are saying makes complete sense. However, if I run my Income Statement and Balance Sheet out of EVO, I'm having trouble reconciling the all income - all expense from the income statement with the retained earnings figure on the balance sheet.

Could you give a little more information about this calculation? Is it a but more nuanced than just looking at the Net Income/Loss at the bottom of the sheet?

Title: Re: RETAINED EARNINGS
Post by lnikitas on 05/03/12 at 09:14:49

Scratch that...I see my mistake. The numbers match just fine! (I was forgetting to subtract out the prev month balance on the balance sheet when I looked at the total for the retained earnings account)

Thank you!