| | Retained earnings adjustment in first year |
| Cause |
- In first year without any previous year data, any difference created by adjusting the opening balance of an account will be posted to the retained earnings account. No pop up window appears to ask you to choose an account to accept the difference.
- For example, if you increase (debit) the opening balance of an account by $100.00, it will automatically credit $100 to the retained earnings account.
- If you increase (debit) the opening balance of an account by $100.00 and decrease (credit) the opening balance of another account by the same amount, nothing will change to the retained earnings account.
- If you increase or decrease the opening balance of the retained earnings account, the opposite will be posted to the retained earnings account. Therefore, nothing will change.
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| Resolution |
- Create an adjustment account in the Chart of Account
- Change the opening balance of this adjustment account to make change to the retained earnings account.
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