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kirti
Level 1

QB auto generated closing entries

Thanks for your response.

I tried the way you suggested to remove closing entries in quick book But it didn't work

I am trying to generate running monthly report for the period April 2018 to March 2019. In this report for the month of December 2018, Quick book report shows all entries for the month of December all the accounts have been closed by transferring closing balance to retained earning

account. I did make sure that there is no closing date in company preference in edit section

I will appreciate if you have other options

 

HoneyLynn_G
QuickBooks Team

QB auto generated closing entries

I can share some more details about the December entries, @kirti.

 

QuickBooks creates automatic adjustments in preparation for the coming year.

 

By default, QuickBooks increases your Retained Earnings equity account by the previous year's net income and decreases your net income by the same amount. This way, you start each new fiscal year with a net income of zero.

 

There isn't a current option in QuickBooks to stop that from happening. The functionality happens regardless if you have turned on or not the closing date feature.

 

For in-depth information about Closing your books, you can refer to the link.

 

That should be enough information to keep you going today, @kirti. Let me know if you have other questions about QuickBooks Desktop. I'm still here to provide more details.

kirti
Level 1

QB auto generated closing entries

Thanks for your quick response.

If QB passes fiscal year retained earning entries to equity account it's OK. But what it does that all the balance of the December month transfer to retained earning by debiting sales and crediting retained earning and crediting all expenses account and debiting retained earning. Because of these entries, I am not able to get  transactions for  only December month. I did call Quick book for the same, Representative tried to help me out but he could not and at last generate a ticket to end the call.

To keep going, I manually reversed all the fiscal year adj entries

FritzF
Moderator

QB auto generated closing entries

I appreciate you getting back to us, and for the steps you've done to get this working, @kirti.

 

Yes, you're right. QuickBooks automatically creates adjusting entries for the year-end adjustments. Reversing it would work to get the transactions for the month of December. However, I still suggest reaching out with an accountant for guidance.

 

I can see how this option would be helpful for you and your business. Rest assured, I'm going to submit a feature request from my side, which is sent to the Product Development Team.

 

Just in case, I'm also adding this article for more information about closing your books in QuickBooks Desktop (QBDT): Close your books in QuickBooks Desktop.

 

Keep me posted if you need anything else by leaving a comment below. I'll be happy to answer them. Have a great weekend!

BoroSec
Level 2

QB auto generated closing entries

This did not help me - I have a report of transactions by account with selected accounts over a two year date range. Retained earnings is not checked as one of the multiple accounts selected. However, it will not allow me to see the 2018 year. Just shows a "Closing entry" of some dollar amount. Under edit, preferences, accounting, company preferences, no closing date or password is set. Why is this happening and how do I undo it, please? I need to be able to see data from previous years and compare, etc. This is not an issue in all of the companies, just the newest one opened in Quickbooks in 2017. I have Quickbooks Pro 2019, upgraded from pro 2017 earlier this year. I have not noticed this problem before?? Why would you have Quickbooks function in such a way that limits our abilities to see data with no choice on our part? One of the main reasons I buy Quickbooks is for the reporting flexibility. Please fix! Thank you.

 

Interesting discovery: If I lie and tell the report I am accrual instead of cash, it gives me the report I want without closing entries.

BoroSec
Level 2

QB auto generated closing entries

Right! exactly same problem for me, and so I do not have totals per account across the two years I am seeking.

ChristieAnn
QuickBooks Team

QB auto generated closing entries

Hi there, BoroSec.

 

Thank you for posting here in the QuickBooks Community.

 

QuickBooks Desktop will automatically close the books every fiscal-year to calculate your retained earnings.

 

To sort it out, let's try to resolve data damage in your company file. You can follow the steps below.

 

First,  you'll need to run the rebuild data utility:

 

  1. Go to the File menu, then select Utilities and Rebuild Data.
  2. On the QuickBooks Information page, select OK. Follow the prompts to save a backup.
  3. Click OK when you see Rebuild has completed.

 

Once done, let's run the verify data utility:

 

  1. Go to the File menu, then select Utilities and Verify Data.
  2. Select OK If you see QuickBooks detected no problem with your data. You may continue using your company file.
  3. if the Verify finds an issue, choose Close, then perform the steps below:

 

  1. Locate and check the QBWin.log or QuickBooks.log files.
  2. Scroll to the bottom for the most recent Verify information.
  3. Find the line that contains the LVL_ERROR, then check Top data damage errors in QuickBooks Desktop.

 

If the issue remains,  I recommend contacting our Support Team to assist you further and investigate this issue.

 

Please let me know how it goes or if you have any other concerns with QuickBooks. I'll be around to help you out. Have a good one.

RS51
Level 1

QB auto generated closing entries

The AUTOMATIC QB retained earnings close did more than transfer my P&L net income to retained earnings.  Net income was $270, but the increase to Retained earnings was $266.  I need to know what the other 4 reduction was-- it appears QB will move more than the P&L to retained earnings at a year end close...

MaryLandT
QuickBooks Team

QB auto generated closing entries

Thanks for joining this thread, RS51.

 

QuickBooks Desktop doesn't have an actual transaction for closing entries. The program computes the adjustments when you run a report. 

 

The Retained Earnings account quick report displays transactions affecting accounts' figure. Follow the steps below on how to open it:

  1. Go to the Lists menu, then Chart of Accounts.
  2. Search the Retained Earnings account.
  3. Click it to open the quick report.

You can run last fiscal year's Profit and Loss statement to know what makes up your Retained Earnings. It shows all transactions that QuickBooks Desktop automatically switched to your Retained Earnings account.

 

Here's how:

  1. Go to the Reports menu.
  2. Select Company& Financial, then Profit and Loss Detail.
  3. Select a report period from the Dates drop-down list.
  4. Click Refresh.

Should you have follow-up questions, please leave a comment below and I'll get back to you.

balloonlady
Level 1

QB auto generated closing entries

I am using Quickbooks Accountant Desktop 2019.  I have NO CLOSING DATE set.  Again, QB has generated closing entries for the end of December 2019 and I can no longer access data easily in either the P&L or the Balance Sheet.  When ia QB going to quit generating entries that are NOT requested.  I have been asking this question for at least 5 years and I don't see a solution. 

Many times I need to access data over several yearly timeframes.  It is impossible.

 

Will someone please tell your back end programmers to end this nonsense?  I am very frustrated that this keeps occurring.

MaryLurleenM
Moderator

QB auto generated closing entries

We don't want you to feel that way, balloonlady.

 

As of now, we're unable to stop this from happening. What I'm going to do is to send this feedback to our product developers. We gather information on features our customers needs the most.

 

If there are other things you'd like to share, we're all ears. Let us know if you have other suggestions in mind.

 

Don't hesitate to leave a reply if you have other questions.

bfor
Level 1

QB auto generated closing entries

I was with you through the "Select All". I entered Retained Earnings in the "Search Filters" window. The "Remove Selected Filter" button is grayed out. Dead end?

Catherine_B
QuickBooks Team

QB auto generated closing entries

Let's get your report customized, bfor. 

 

Thanks for your time in filtering the accounts without the Retained Earnings account. The Remove Selected Filter button will be available if we click a Filter in the Current Filter Choices section. I'll show you how to do that and I've attached screenshots for further reference. 

 

Then, here's how to filter the Profit and Loss report again without the Retained Earnings account. 

  1. From the opened Profit & Loss report, click the Customize Report button. 
  2. Select the Filters tab. 
  3. Click Account under FILTER.
  4. In the All accounts drop-down, click Multiple accounts
  5. Hit the Select All button and then enter Retained Earnings in the Search field to uncheck it. 
  6. Click OK and then OK again. 

 

You can save the customized report so we don't have to filter it all over again. Just click the Memorize button from the reports menu. 

 

Keep me updated on how this works. I'm here to help!

StJoeArts
Level 1

QB auto generated closing entries

I just tried using the suggested workaround and it didn't work. I have the nonprofit 2020 addition.  We transitioned from Sage where we close the year after all adjustments where made. A business needs to be able to make end of year adjusting entries and close the books when ready and not be forced into it by a software program.  This doesn't appear to be a very professional system. I'm truly disappointed in the program. 

FT1
Level 1

QB auto generated closing entries

To everyone frustrated by QB product managers' inability to just implement this years=long requested fix: When you would like to see a transaction report spanning more than one fiscal year, say March 2019 -  March 2020, without including the useless "Closing Entry," set your report Date to All. If needed, you can then export to Excel and remove unwanted periods. I know, a spreadsheet sort of defeats the purpose of using QB, but let's face it, workarounds are the best we can hope for on this issue. I almost wish the mods would just tell us it's like this by design, period. The numerous ineffective suggestions over the years just rub salt in the wound. Other than this and other little "quirks," QB is great. Keep u p the OK work!

EdnaST
Level 1

QB auto generated closing entries

Were you able to determine how to remove these auto entries?

Maybelle_S
QuickBooks Team

QB auto generated closing entries

Thanks for joining the thread, @EdnaST.

 

Currently, we are unable to remove the auto entries in QuickBooks Desktop (QBDT). Auto closing entries are important to use for transferring the balance from the Income and Expense accounts to Retained Earnings.
 

However, we can customize and filter the expense report if you wish to disallow the Retained Earnings from showing in the report.

 

Here's how:

  1. Go to the Reports menu.
  2. Hover over Company & Financial, and then choose Expenses by Vendor Detail.
  3. Click Customize Report.
  4. Make the necessary changes in the Display window.
  5. Select the Filters tab.
  6. On the Search Filters tab, search and select the Account option.
  7. From the Account drop-down arrow, choose Multiple accounts.
  8. In the Select Account window, click the Select All button. Then, in the search field, enter Retained Earnings.
  9. Un-check Retained Earnings, and then click OK twice.

I've also added this link to learn more about customizing reports: Customize reports.

 

In case you'd like to know more about Closing Entries, please refer to this article: Close your books in QuickBooks Desktop.

 

Besides, to get the latest updates about product news and features in QBDT. You can always visit our QuickBooks blog. This site includes several topics such as accountant advice and what's new in QBDT.

 

Don't hesitate to drop a comment below if you have other questions. I'm always happy to help. Take care!

shopacc
Level 1

QB auto generated closing entries

Anonymous

"It does shift current earnings to retained earnings "  how ? How if it does not calculate ? and if calculates, that is a "closing process" (Income-Expenses=current Earnings)

Luis A Serrano
Level 1

QB auto generated closing entries

El inactivar la cuenta de Ganacias Retenidas no me produce ningún cambio en los informes financieros. Sigue apareciendo la cuenta de Ganancias Retenidas presentando las entradas de cierrre a diiciembre 31, fecha que no es mi periodo contable.

Luis A Serrano
Level 1

QB auto generated closing entries

Go to
Select in Menu bar
Company
Drop down
Select My Company
Select pencil icons
Select Report Information
In First month in your: select the month
Fiscal Year(drop down list)
Tax Year (drop down list)

JonpriL
Moderator

QB auto generated closing entries

Hola @Luis A Serrano,

 

QuickBooks generará automáticamente la entrada de cierre al final del año siguiente a la fecha de su informe, incluso si ha establecido una fecha de cierre o no. Con esto, la capacidad de eliminar la cuenta en cuestión no es posible.

 

Además, se recomienda buscar la orientación de un contador con todas las preguntas relacionadas con sus libros de contabilidad para evitar estropearlo. Dicho esto, aquí hay un artículo que puede leer para obtener más información sobre las entradas de cierre generadas automáticamente: Cierre sus libros en QuickBooks Desktop.

 

Además de eso, tengo este útil artículo como guía en la preparación para la temporada de impuestos 2020: Lista de verificación de fin de año de QuickBooks Desktop.

 

Si hay algo más en lo que pueda ayudarlo, hágamelo saber dejando los comentarios a continuación. Estaré aquí para echar una mano.

 

Descargo de responsabilidad: tenga en cuenta que esta respuesta se publicó originalmente en inglés, pero se ha traducido al español en su consulta inicial.

 

 

Hello @Luis A Serrano,

 

QuickBooks will automatically generate the closing entry by the end of the year following your reporting date even if you've set a closing date or not. With this, the ability to remove the account in question is not possible.

 

Also, it is recommended to seek an accountant's guidance with all questions related to your accounting books to avoid messing it up. That being said, here's an article you can read to learn more about the auto-generated closing entries: Close your books in QuickBooks Desktop.

 

On top of that, I've got you this helpful article for guidance in preparation for the 2020 tax season: QuickBooks Desktop Year-end Checklist.

 

If there's anything else that I can help you with, please let me know by leaving any comments below. I'll be here to lend a hand.

 

Disclaimer: Please be informed that this response is originally posted in English but has been translated to Spanish base on your initial query.

BigRedConsulting
Community Champion

QB auto generated closing entries

I don't know why Intuit reps have let this thread go on for so long, spreading misinformation in the process.

 

QuickBooks does not create closing entries at year end. QuickBooks doesn't even have a closing feature like some accounting apps do. It does have a closing date in preferences, but all that does is stop you from editing transactions before whatever random date you enter there.

 

What you're seeing happens at report time for some financial reports, particularly the Balance Sheet, which adds earnings to the balance sheet to balance it, because that's how balance sheets work. It summarizes and splits the earnings into current earnings and retained earnings based on the report date and your fiscal year.

 

That's it.

 

There's nothing to fix or back out or change.

 

There are issues with the balance sheet report, where it doesn't actually balance in some cases. Intuit should be hugely embarrassed by this and should have fixed it years ago, but they have not. But, this has nothing to do with any sort of automatic closing transactions (which don't actually exist, as noted.)

Sepp
Level 3

QB auto generated closing entries

I need to respond to the above, recent reply, to this post.

While the response is TECHNICALLY true, to the layperson, trying to run a report, it APPEARS that there are 'closing' entries. And there is no EASY identifiable way to get the report to show the detailed information that one might want or need.
I have learned, since this post that there is a way to generate a report that does show all the detail of an account when the dates include a 'year end' data (ie december 31 - January 1st). But again, it is not intuitive or apparent that the system is auto-generating the displayed information when looking at the report.

So, as far as I'm concerned, QB should fix that and make it clear what the report is showing. AND include a way to point a user in the right direction to get a full report without consolidated entries.

drhaley
Level 1

QB auto generated closing entries

There never was a date or password assigned so I can't remove them.  Yet, QB still thinks it's in charge of my accounting and makes closing entries.  I want to make them myself!

Help!

drhaley
Level 1

QB auto generated closing entries

I also do not want QB to generate closing entries for me.  Tell your back-end programmers that some of us actually want to control the accounting ourselves. I find it unbelievable that QB even does this in its QB Accountant program.

I am totally frustrated and irritated and wondering if there is another program that won't try to be in control of my books.

That said, is there any way to undo a QB auto generated closing entry (which isn't actually an entry so I can't just delete it)? 

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