I am having the same problem regarding to this issue in the following article. But I didn't find any pratical solution though, the other thing I don't understand is that I never have this issue before until recent months.
@2robertc [I get a "Retained Earnings" total at the top of the report. Is there a way to stop this from happening? I want to be able to run report detail for specific periods across years or months and not have to look at "ALL" the transactions in order to see the detail for a particular date range. ]
Reason for this is once you set your financial year ( Reporting period ) Profit/Loss earned for the period is transferred to the Retained Earnings in the Balance sheet means Profit/Loss retained for the period belongs to the equity holders and is part of the accounting process & double entry system.
Comment back for further clarifications.
I have a file where I did not set the closing date nor password but QBDT has auto-generated a closing entry. I cannot edit the entry though I would like to be it is wrong. Also, I'm really confused as to where it got the number from because I started the company file as of 7/31/2020, the end of the fiscal year, by inputting all the opening balances for assets, liabilities and equity. I was going to post the 2020 net income to retained earnings so I wouldn't have to enter all the balances of the income and expense accounts. I guess I could make an adjustment so the NI is correct, but I really want to know why is the program doing this? I often work on historical files for my clients as they come to me a few years behind. I haven't finished with the 2020-21 year so I don't want it to "close", hence why I didn't set a closing date.
This is almost as annoying as Simply Accounting not letting me proceed with a new year until i close the past fiscal year. Its absolutely impractical in the real world!
Thanks for joining us here. Welcome! QuickBooks is a powerful program that enables you to complete your daily goals with peace of mind. I'll be happy to share more information so you're on the right track with your work!
Based on the information provided, you can open the books by following these steps;
1. Go to Edit and choose Preferences
2. Select Accounting
3. Click on the Set date/Password button
4. Clear the Closing date
Here's a helpful guide to have on hand for closing your books in QuickBooks Desktop.
Please don't hesitate to contact us if you require additional assistance.
Feel free to reach back out with other questions. We'd be glad to assist!
Thank you for your reply. However, no closing date has been set--as mentioned in my description of the problem--so there is no date to "clear". I followed your instructions anyways and the date is of course blank.
I would most like to delete the auto-generated entry; please advise if this is possible. Then I can manually adjust the retained earnings correctly and clear the opening balance equity account as is necessary when starting a new database file with opening balances.