1 Reply Latest reply on Apr 21, 2006 3:38 PM by Andee DiCola

    CLOSING PERIODS

    Andee DiCola

      I need to know the effect that closing the period has on the system and reports.

      I know that the execution of this clears the balance of Revenues and Expenses to Retained Earnings. The issue that I am having is that our consultants closed it for March 2005 when I did not want to do monthly closes. They told me to journal entry the entry out of Retained Earnings and to reclose the year. I did this and $200K posted then to Retained Earnings as my income. When I run the P&L statement, it has that the annual income as $250K for example.

      It appears that closing period writes the income to the P&L statement somewhere...? and maybe the P&L statement is now incorrect because of the direction given by consultants to just journal the March 2005 and reclose.

      Help! I need this fixed.

        • 1. CLOSING PERIODS
          Andee DiCola

          I did figure this out. The P&L does not pick up closing entries. Therefore, my P&L had the original entries plus my JOURNAL ENTRY to put back the March 2005 closing entry. Therefore, the P&L was overstated.

          I reversed my entry then closed again and got correct results.