Thanks David
yes, I do understand that.
I had misunderstood the meaning of
"built-in reports automatically handle concepts like retained earnings
between two different financial periods"
to mean on the BS it would separately show prior years' retained
earnings and current year-to-date profit"
But as I think about your answer, I realise that would be unusual.
The current year's profit is only shown separately on the P&L,
and that is what the sentence from the documentation means.
mc
(I hope this method of replying works
- I didn't get an email with your reply in it to reply to)
------------------------------
mc,
The balance of Retained Earnings is a balance , i.e. the value of the sum of
all the credits minus the sum of all the debits to it up to a specific date
from whenever recording to the account started. When you close the income
and expense accounts to retained earnings you credit (add) the difference
between their sums (the value of retained earnings for the accounting
period) to the previous Retained Earnings account balance to get a new
total.
David Cousens
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