Retained Earnings

This function enables you to create a General Journal transaction that will transfer your Profit and Loss (Income and expense) balances to Retained Earnings.

To do this you must first create a Retained Earnings Account Category (if you have not done this already) and select that in the Retained Earnings Account field. You only need to do this once.

If you create a Retained Earnings transaction at the end of every previous financial year then Profit and Loss items in the Trial Balance report will only show totals for the current financial year. The actual Profit and Loss account itself will only ever show current year earnings or expenses so this function only effects the Trial Balance sheet.