Historical balance

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Contributing Cover User CIS-CL
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Contributing Cover User
Australia
Contributing Cover User

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Historical balance

Hi,

 

After upgrading to AR 2019.2.1 and changing some GL codes, I have a Historical balance of $146k on the Balance Sheet. My Balance Sheet and Trial Balance still balances ie.  Net Assets =Total Equity and Current Year Earnings of $365k is correct as per attached Balance Sheet file.  However I need to combine Historical balance of $146k and the Retained Earnings of $6,887k to give the correct total of Retained Earnings of  $6,740k.

 

I have tried entering $1 in Set Up - Balances Account Opening Balances then removing the $1 to reset the balances, however it has not helped to remove the Historical balance of $146k.

 

How do I zero out the Historical balance and also amend the Retained Earnings to the correct amount of $6,740k? 

 

2 REPLIES 2
MYOB Moderator Steven_M
33,492 Posts
MYOB Moderator
New Zealand
MYOB Moderator

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Re: Historical balance

Hi @CIS-CL 

 

One of the fundamental processes of accounting is that Assets + Liabilities = Equity.

 

When you create a company file, you get the option to enter opening balances for your accounts. This is done via Setup>>Balances>>Account Balances. If the accounts don't balance with that accounting equation, the system will place the residual amount into the Historical Balancing account to balance the equation.


If the company file has been created and used for a period of time you shouldn't be touching or updating the Historical balancing account. If that is required, and I would recommend speaking with an accountant to confirm which method may be best, one of the following can occur:

  • Go to Setup>>Balances>>Account Opening Balances, adjust the values so there is no/the desired balance in that historical balancing account
  • Enter a journal entry to remove/adjust the balance of that historical balancing account by offsetting that against another account.

Kind regards,
Steven

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Contributing Cover User CIS-CL
12 Posts
Contributing Cover User
Australia
Contributing Cover User

12Posts

0Kudos

1Solutions

Accepted Solution Solved

Re: Historical balance

The Historical Balance wasn't there prior to sending datafile to MYOB for repair. So I had to send the datafile back to MYOB for a 2nd repair as the Historical Balance occurred after MYOB's initial 1st repair of multi-currency in the datafile to allow for upgrade to AR 2019.2.1. It's now resolved.

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