So Quickbooks online automatically closes temporary accounts into R/E, that's not an issue.
My question is what date do I effect the journal entry allocating R/E to the Partner Equity accounts respective to the partnership agreement.
If I date the entry 12/31/2018, then when I run a balance sheet report for that year, R/E does not shows negative (since Quickbooks does not show the closing entry to be effected until 1/1/2019).
However, if I date the entry 1/1/2019, then the 12/31/2018 balance sheet line totals for the Partner Equity accounts doesn't match the K-1 statement item L: Partner's Capital Account Analysis. (since that shows current year increase) and if someone were to take a glance at 12/31 balance sheet and the K-1, the ending balances would not match.
Okay so that's how I did it initially, since it made the most since of the two.
I am reporting Schedule L even though we are not required just out of transparency for the company. I figure it will help in the even we do get to a point that we have to report, we will already have a history of reporting it?
Although one of my pet peeves with the 1065 is that it is whole numbers only, so the rounding errors caused a $1 difference.