To close the retained earnings, you need to take the following steps:
The Statement of Financial Position before manual entry.
To create manual general ledger transaction-
Accounting > Navigation settings > From the navigation panel settings, add the transaction general ledger to the Selected Commands.
Create the entry by opening the transaction (General Ledger) section from Service tools.
Enter the details as shown in the screenshot-
DR the profit and loss Account (8010000) and CR the Retained earnings (3020000).
Amount, take from the REPORT and fill in the date of 31 December 2018.
Transfer of Profit to Retained earnings
Once the entry is made, the values will be transferred to Retained earnings and in the upcoming months, the profit will be accumulated in the profit and loss GL. Please note, you will have to do the same process every year end to close to Retained earnings.
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