Balances remain on profit and loss nominal codes after year end

Check which profit and loss nominal codes have brought forward balances

1. Go to Nominal codes then select Trial balance.
2. Select Printer then click Run.
3. In the Criteria Values window, select Brought forward then click OK.
4. Check which profit and loss nominal codes have a balance. 

TIP: If you're using the default nominal code structure, the profit and loss codes are those in the range 4000 to 9999.

Run through the sections below to check how the balances have occurred, and, if necessary, how to correct them.

Check the Chart of accounts for missing nominal codes

If the nominal code isn't in the Profit & Loss section of the Chart of accounts when you run year end:

• The software doesn't transfer the balance to Retained earnings
• No ledger journal appears in the activity of the nominal code

1. Follow the steps in our Identify and correct errors in your chart of accounts article.
2. After correcting any errors, manually move the brought forward balances to the Profit and Loss Account.

Manually move the brought forward balance to the profit and loss account

NOTE: Use the brought forward Trial balance you printed in the Check which profit and loss nominal codes have brought forward balances section.

1. Go to Nominal codes and select Journal entry.
2. Enter a Reference and a Date.

The date is to be the last day of the previous financial year to move the balances from the brought forward period.

3. When the Date entered is outside current financial year warning appears, click OK. 
4. Enter the relevant nominal codes and amounts from the brought forward Trial balance:

• Enter the values from the Trial balance to clear profit and loss brought forward balances. For example, enter a debit balance from the report as a credit
• To balance your journals, post the remaining value to Retained Earnings nominal code, 3200 by default. For example, if the balance is 500.00 Debit, enter a Credit of 500.00 using the nominal code 3200 

For example, post a journal for £/€100 to move the balance from 7000 Gross Wages to the Profit and Loss Account:

5. Click Save then Close.

You've now moved the brought forward balance from the affected nominal codes to the profit and loss nominal code. The next time you print your management reports the figures will be correct.