Profit and Loss reporting in the Balance Sheet

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KimBris
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Profit and Loss reporting in the Balance Sheet

Hi everyone

 

I'm closing off a financial year (2017-2018) that has been started by another user. Have done Journal entries to get all the Account Balances matching to start the current financial year.

 

All transactions entered for the current year have been balancing each month (July, August, September) except two accounts - Current earnings and Retained earnings.

 

I need the Current Earnings (or another account) to show the Income and Expense total (P/L) for that month on the Balance Sheet.  And the Retained earnings to carry forward that amount into the next month, being absorbed into a running total.

 

Currently the end of year Profit and Loss figure is appearing in the Current Earnings account.  It carries across once in to Retained earnings for July.  And then the Retained Earnings account remains static.

 

The Current Earnings account for July, August and September has increased by amounts that do not relate to the monthly Profit and Loss figures (they are far too small).

 

Any help, or a direction of where to find that help, would be greatly appreciated.

 

I'm working on a desktop version of AccountRight (Premier V19.10).

 

 

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Ultimate User gavin12345
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Re: Profit and Loss reporting in the Balance Sheet

Hi @KimBris 

 

You should never make adjustments to either of those accounts. Current Year earnings on a balance sheet is the current years net profit. When you roll over the FY (File > Start a Year) MYOB clears all the P&L balances (and therefore the CY earnings at that point as at 30 June) and shifts that to Retained Earnings. Retained Earnings is the sum of all prior year profits. 

 

Once the file is in the new FY, there will be a Current Earnings balance on the BS for the new FY based on the P&L for that FY.

 

Regards

Gavin

KimBris
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Re: Profit and Loss reporting in the Balance Sheet

Thank you very much for responding to my post.

 

To clarify the company is using another bookkeeping system and we are migrating over to MYOB.

 

Another user has started 2017-2018 but has left it unfinished.  So I need to close off 2018 with the account balances matching those of the other financial statements.  To do this I have done journal entries to adjust all other account balances.  Including the Income and Expense totals.

 

Yes you are correct, I cannot change those two equity accounts.  My question is - is there a way to create accounts that show the Profit and Loss for the month.  And carry that amount forward every month.  This company likes to see that in their balance sheet on a monthly basis.  Not just at the end of the year.

Ultimate User gavin12345
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Re: Profit and Loss reporting in the Balance Sheet

Hi @KimBris 

 

If I have understood you correctly, you want the month by month P&L and Balance Sheet to match the Monthly P&L in the other system.

 

Rather than doing one journal entries to get the account balances to match as at the end of the 2018 year, you should do a monthly journal instead. One at 31 July 2017 to match the other system, one at 31 Aug 2017 etc.

 

Once you roll to 2018/2019 you can generate a P&L and Balance sheet as the end of each month.

 

Regards

Gavin

KimBris
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Re: Profit and Loss reporting in the Balance Sheet

Hi Gavin

 

I had wondered if this was a fix - to enter all the P/L figures for every month of 2018, before rolling forward 2018. 

 

I will give that a go. 

 

Hopefully it will fix the Retained Income account as well (that is not increasing by the P/L amount after July 2018).

 

Thank you again for taking the time to answer to my post.  I really appreciate it.

 

best regards

Kim

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