[GL] Reviewing Profit/Loss and Retained Earnings Accounts

Sometimes Current Year Retained Earnings appears more than once on the Balance Sheet, even in both Assets and Liabilities. This usually happens because of:

• Incorrectly categorized GL accounts

• Chart of Accounts or GL Report Category setup issues

• Old or “dummy” GL accounts (often with $0 balances)

This guide explains two common causes and how to fix them.

Scenario 1: Dummy GL Account Causing Retained Earnings to Split

Problem:
A dummy GL account (for example, 9999.9999) created during setup may still be active. Even with a $0 balance, it can cause Retained Earnings to appear on multiple lines.

How to Fix:

1. Run the Balance Sheet
   Go to GL > Reports > Balance Sheet.

2. Drill into Retained Earnings lines
   Click each “Current Year Retained Earnings” amount to see which GL accounts are included.

3. Identify dummy or unused accounts
   Look for suspicious or zero-balance accounts.

4. Delete the dummy account
   Go to GL > Programs > Chart of Accounts, select the account, and click the red X (delete).

   • If you get an error, the account has transactions and cannot be deleted.

5. Re-run the Balance Sheet
   Retained Earnings should now appear on a single line.

Scenario 2: Incorrect GL Report Category Setup

Problem:
Retained Earnings is split because Income or Expense minor categories have a value in the Balance Sheet Order field.

How to Fix:

1. Run the Balance Sheet
   Go to GL > Reports > Balance Sheet.

2. Drill into each Retained Earnings line
   Note the GL account numbers listed.

3. Check GL Account Parts
   Go to GL > Programs > GL Account Parts and note the Major Categories (e.g., 200, 210).

4. Review GL Report Categories
   Go to GL > Programs > GL Report Categories.

5. Clear Balance Sheet Order values

   • Select each relevant Major Category

   • Open the Minor Categories tab

   • If Balance Sheet Order has a number, delete it

   • Click Save

   • Income and Expense categories should have this field blank

6. Re-run the Balance Sheet
   Retained Earnings should now display as one line.

Summary

• Dummy GL accounts: Delete unused or zero-balance accounts if possible.

• Incorrect report setup: Clear Balance Sheet Order values from Income and Expense minor categories.

Best Practices

• Remove dummy GL accounts after setup.

• Never assign Balance Sheet Order values to Income or Expense categories.

• Review your Balance Sheet layout regularly to catch issues early.