Tech Tip: When Transfer to GL Transfers to the Retained Earnings Account

Q: I performed Transfer Data to GL in one of the subsidiary modules. The transfer was successful; however, the system displayed the message, ”Transfer to GL is completed. $XXX.XX has been transferred to the Retained Earnings Account.” What does this mean?

A: AccountMate displays this message if the transferred data contains transactions dated in the prior fiscal year and the journal entries for the transactions include Income Statement accounts (e.g., revenue, expense, etc.). This is to inform users that these transactions from the subsidiary module will post adjusting entries to the Retained Earnings GL Account ID. Income statement accounts are closed off to the Retained Earnings account when the fiscal year is closed. To update the Retained Earnings ending and beginning balances due to the prior year posting, AccountMate automatically creates the adjusting entries.