QB Issue Resolution:
What is the Retained Earnings account?
Answer ID: 6259
Retained earnings is the sum total of income and expense from all previous years. Due to the type of account it is, the program creates it automatically. When a new fiscal year starts, the program takes the net income from the last fiscal year and adds it to Retained Earnings on your Balance Sheet. There is no actual transaction that takes place, as the amount will be different depending on the date of the balance sheet. Additionally, there is no register for Retained Earnings and it is not possible to edit, delete or add a sub-account to it. You could change the name of the account if you deemed it necessary and Journal Entries can be created which directly impact the balance on this account.
1. Choose Reports > Profit & Loss.
2. Click Customize.
3. For Transaction Date, select All Dates.
4. Under Rows/Columns, select Fiscal Years or Years.
5. Click Run Report.
6. If the total of this report does not match the Retained Earnings balance on your current balance sheet report, the reason will most likely be that journal entries have been entered that have posted to the retained earnings account.
To see the journal entries:
1. Choose Gear Icon > Chart of Accounts.
2. Click once on the Retained Earnings account to highlight it.
3. At the top right, click Report.
4. From the Transaction Date list, select All Dates.
5. Click Run Report.
6. Adding (or subtracting from, if it is negative) the total on this report to the Profit and Loss report should match your balance sheet total for retained earnings.
Answer ID 6259
Products QuickBooks Online Simple Start (H)
QuickBooks Online Essentials (H)
QuickBooks Online Plus (H)
Categories Using This Product
Date Created 04/29/2014 08:13 AM
Date Updated 03/17/2015 06:27 PM
Allow Crawling? Yes
Resolution for Issue 'What is the Retained Earnings account?' available: Yes (Solved).
Source: Intuit Community forum.
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