[GL] Reviewing Profit/Loss and Retained Earnings Accounts

In some cases, the Current Year Retained Earnings line appears multiple times on the Balance Sheet — sometimes even in both the Assets and Liabilities sections. This issue is typically caused by:

1. Improperly categorized GL accounts
2. Setup issues in the Chart of Accounts or GL Report Categories
3. Leftover or “dummy” accounts with zero balances

This guide covers two scenarios and the steps to resolve them.

Scenario 1: Dummy GL Account Causing Retained Earnings to Split

Problem: A dummy GL account (e.g., 9999.9999) may have been created during company setup and is now incorrectly pulling into the Balance Sheet — even with a $0 balance — causing the Current Year Retained Earnings to split across multiple lines.

Steps to Resolve:

1. Run the Balance Sheet Report
2. Navigate to GL > Reports > Balance Sheet.
3. Drill Down into Retained Earnings Lines
4. Click on each line amount labeled "Current Year Retained Earnings" to see which GL Account(s) are contributing.
5. Identify Any Dummy or Suspicious Accounts
6. Look for accounts like 9999.9999 or accounts with zero balances that shouldn’t be active.
7. Go to the Chart of Accounts
8. Path: GL > Programs > Chart of Accounts
9. Find and select the dummy account.
10. Attempt to Delete the GL Account
11. Click the red "X" (delete) at the top of the screen.

If you receive an error: It means there are transactions posted to that account, and it cannot be deleted.

Rerun the Balance Sheet Report

After the account is deleted (or fixed), re-run the report.

You should now see Current Year Retained Earnings on one line only.

Scenario 2: Improper Report Category Setup

Problem: Current Year Retained Earnings is split due to improper setup in the GL Report Categories, specifically when Minor Categories under Income/Expense Major Categories have a Balance Sheet Order number.

Steps to Resolve:

1. Run the Balance Sheet Report
2. Go to GL > Reports > Balance Sheet
3. Drill Down into Each 'Current Year Retained Earnings' Line
4. Click on the line amounts to identify which GL Account(s) are included.
5. Find the GL Account Numbers
6. Note which GL accounts are listed.
7. Check the GL Account Parts
8. Path: GL > Programs > GL Account Parts
9. Look up the account numbers you noted.
10. Note their Major Categories (e.g., 200, 210, 220).
11. Go to GL Report Categories
12. Path: GL > Programs > GL Report Categories
13. Review the Minor Categories Tab
14. For each Major Category noted above:
15. Click the Minor Categories tab.
16. Check the Balance Sheet Order column.
17. Clear the Balance Sheet Order
18. If any Minor Category under Income or Expense has a number in the Balance Sheet Order:
19. Delete the number.
20. Click Save.
21. Correct Setup: The Balance Sheet Order field for Income and Expense categories should be blank so that retained earnings roll up properly.
22. Rerun the Balance Sheet Report
23. The Current Year Retained Earnings should now display as a single line.

Step 1: Identify Major Categories

Example:

Major Categories 200 – 20 might represent Income and Expense accounts.

Step 2: Check Minor Categories

1. Go to GL Report Categories
2. Select Major Category
3. Open Minor Categories tab
4. Make sure this field is blank: Balance Sheet Order = (should be empty)

Summary

1. Dummy GL Account- Zero-balance or unused accounts pulling into the Balance Sheet    Delete the account (if no transactions)

2. Incorrect Report Category Setup- Minor categories have Balance Sheet Order values    Clear the Balance Sheet Order field and save

Best Practices

Do not leave dummy GL accounts active after company setup.

Always ensure Income and Expense categories do not have Balance Sheet Order values.

Review the Balance Sheet layout quarterly or annually to catch categorization issues early.