Many BusinessVision users don't understand what the Current Earnings
General Ledger account is actually used for, and as a result in many
cases BusinessVision is improperly configured. In Special
Accounts...
![](current_earnings/retained_current_earnings01.jpg)
The Retained Earnings account MUST be set to Retained
Earnings, and the Current Earnings account MUST be set to
Current Earnings.
![](current_earnings/retained_current_earnings02.jpg)
- The SOLE purpose of the Current Earnings account is
to serve as a placeholder on the Balance Sheet to display the
net income for the year-to-date. Nothing more.
- The Current Earnings account is NOT meant to receive the net
income for the year during the yearend process. It plays
absolutely NO role in the yearend process.
- The Current Earnings account should NEVER be used for
journal entries.
- If you have a balance in your Current Earnings account,
please make a journal entry to transfer this balance to Retained
Earnings where it belongs.
Please also see Yearend and
Fiscal Years. |