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    Retained Earning GL Account Code

    The Retained Earnings GL Account is used to receive year end balances from income and expense accounts and informs the Retained Earnings in the Shareholders Funds on the Balance Sheet.

    The Retained Earnings account is updated each year upon the completion of the Financial Year Close Off. It is a cumulative account used for reporting purposes only and is not available for transactions or journals.

    Set a Retained Earnings GL Account

    When setting up Infusion for the first time a Retained Earnings GL Account must be created. 

    A notification displays on the Home page to create the GL Account. Select to complete.

    The new GL Account window opens.

    • The Account Name is pre-populated and can be edited if required.
    • Function is set to Equity - Retained Earnings. Only one GL Account can be set to this function.
    • The Default GST Rate is set to zero as the account is not applicable for GST.

    Update the Account ID and Save

    If a license is created with an imported Chart of Accounts that includes a Retained Earnings Account, or the Retained Earnings account is created directly from the General Ledger the notification disappears from the Home page. 

    Retained Earnings Account Enquiry

    Enquiry shows activity against the Retained Earnings Account with information displayed on different tabs. To open, choose Enquiry from the toolbar within the account.

    Transactions tab

    When the Financial Year is closed off, the balance of the Income or Expense account is updated to the Retained Earnings Account and these display as Year End Adjustments.

    If further transactions are created in a previous financial year and after the Close Off, additional Year End Adjustments are automatically created with the new transaction. As such, there may be multiple Year End Adjustments from the same GL Account. The Retained Earnings balance is updated on the Balance Sheet each time a new Year End Adjustment is created.

    Balances tab

    The amount displayed on the Balances tab reports through to the Balance Sheet and is the total of all Year End Adjustments for the financial year. 

    When the Financial Year is closed off, the Retained Earnings balance is adjusted to reflect the latest close off. Balances remain static throughout the financial year (unless there is a further transaction created for the previous year).

    References Tab

    The References tab shows the amount of times the Retained Earnings GL Account has been referenced and is a count of all Year End Adjustments.

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