Begin a New Year with a Zero Balance in the Current Year Surplus Account

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If you want the Fund Balance > Current Year Surplus account to represent the surplus for the current year only and begin the new year with a zero balance in the Current Year Surplus account, a journal entry can be entered to move the balance as of the end of the year (for example, December 2023) to a different fund balance account. You will want to enter the journal entry after you have completed ALL transactions in the current year (for example, 2023). The journal entry can be entered after entering transactions for the new year (for example, 2024).

Prerequisite: If you do not have two accounts: one that stores the prior year Surplus(Deficit) and one that represents current year Surplus (Deficit) for this fund follow the steps below:

 

Current Year Surplus(Deficit) Account:

  1. Select Setup > Fund > Additional Detail tab.
  2. Right-click on the Retained Earnings Account box and select Edit.
  3. In the Name box, enter a new name for your current year Current Year Surplus account, for example: Current Year Surplus (Deficit), and then click Save.

Prior Year Surplus(Deficit) Account:

  1. Select Setup > Accounts > Accounts. Click New.
  2. In the Name box, enter a name for your prior year Surplus(Deficit) account, for example Prior Year Surplus(Deficit).
  3. In the Type box, select Fund Balance and in the Account Category box, select Accumulated Surplus(Deficit).
  4. Click Save.

 

 

Find the Balance of the Current Year Surplus Account:

  1. Select Setup > Accounts > Accounts > Balances tab. Select the Fund.
  2. Expand Fund Balance. Select the period of the current year (for example, December 2023). Note the balance for your current year Current Year Surplus (Deficit) account (in this example, Current Year Profit/Loss).

Enter the General Journal Entry:

The journal entry grid uses a Debit / Credit format.

  1. Select Processes > General Journal Entries.
  2. In the Date box, select the beginning date of the new year (for example January 1, 2024) .
  3. In the Account column, select the Current Year Current Year Surplus (Deficit) account that stores your current surplus (deficit).
    • If the Current Year Surplus (Deficit) is a positive value at the end of the current year (for example, in December 2023), enter the value in the Debit column.
    • If the Current Year Surplus (Deficit) is a negative value at the end of the current year (for example, in December 2023), enter the value in the Credit column. Always enter the value as a positive number.
  4. Continue on the next line. In the Account column, select the Prior YearCurrent Year Surplus (Deficit) that stores the prior surplus (deficit) for this fund.
    • Enter the value in the opposite column used for Current Year Current Year Surplus. Total debits MUST equal total credits to save the transaction.
    • Click Save. When you begin posting transactions in the new year, for example, January 2024, Current Year Surplus (Deficit) will represent the net profit/loss for the new year.

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