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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

 

Highlighted
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.

Highlighted
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

Highlighted
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!

Highlighted
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.

Highlighted
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.

Highlighted
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.

Highlighted
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...

Highlighted
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.

Highlighted
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.

Highlighted
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.

Highlighted
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?

Highlighted
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!

Highlighted
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. 

Highlighted
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!

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