Tech Tip: Retained Earnings Transfers When Recording Transactions with Prior-Year Posting Dates

Why do I encounter the message, “xxx.xx amount has been transferred to Retained Earnings” when I perform Transfer Data to GL or Period-End Closing?

The message indicates that expense or revenue transactions recorded during the current period were assigned prior-year posting dates. In keeping with proper accounting procedures, these transactions are transferred to the Retained Earnings GL Account ID as adjusting entries.