Print your General Ledger Chart of Accounts and check the following: General Ledger | Reports | Details | Chart List.
Each posting account adds to a total account, which is then used to accumulate totals on financial reports. An account must add down the chart to a greater account code. You can only add to a Type 4 – Total Account.
Examples: Sales accounts add to Net Sales, Expense accounts add to Total Expenses.
During the end-of-year processing you will want the balance of certain accounts to carry forward into the new year and others to clear. In addition, you may want the closing balance of one account to be the opening balance of another account.
Check the following:
Income & expense accounts Income & Expense are tracked for one year and at the end of the year the balances are reset to zero. The EOY Indicator should be 0 – Reset. The opening balance for the new year will be zero.
Balance Sheet accounts Balance Sheet accounts are running totals of Assets and Liabilities, therefore the balances are not cleared out at the end of year. The EOY Indicator should be 1 – Retain. The closing balance will be brought forward as the opening balance for the new financial year.
Carrying forward retained earnings The net profit at the end of year is set to zero and the balance transferred to Retained Earnings for the new year. Retained Earnings C/Fwd should be a Total account with EOY Indicator 2 – Closing Balance. This will be the total of the Profit in the ending year. Retained Earnings B/Fwd should be a Posting account with EOY Indicator 3 – Opening Balance. This is the account the profit will be posted to during end ofyear.
For Closing and Opening Balance accounts, you have to enter the corresponding account code the balance is to transfer to or from.
Checking your Attaché chart of accounts(01:32 minsVideo)