Hi Rob,We are doing BKG402A unit 6 and having some difficulty with changing the 3-9000 current earnings account to be non-linked. it is linked to 3-8000/3-9999 .We are requested to make 3-9000 header account with a subheader of 3-9999 but have tried all sorts of attempts and are getting nowhere.Your help will be much appreciated
Thu, 06/05/2014 - 14:48
#1
chart of account Brocks-Unit 6 page 25
Can I first say thank you for posting this so that I can address this issue and others also can benefit from a better understanding of these very important accounts.
While there is available within MYOB an option to change the "Historical Balancing Account", I do not believe this should be done, and in fact I would strongly object to this happening for the reasons I will outline. The account is given a code of 3-9999 which is the last number available in the "Equity" numbering series. As such this should never get in the way of anything else you may wish to do within equity.
There are three (3) equity accounts that should not be changed for any reason I believe.
Current earnings because this is a system account that holds the calculated Net Profit value from the Trading Statement. (P&L)
Retained earnings because it is used to receive the end of year rollover values generated when the end of year procedures are run and the Trading Statement (P&L) account values are rolled back to zero ($0.00)
Historical Balancing because it is used to create an artificial balance at the file creation stage where all balance sheet values are not immediately available from the accountant. In this way a file can be started with the absolute basics such as 30th June balances for all Bank accounts, Debtors, Creditors, Inventory and credit cards
Rob