The retained profit error occurs when the comparative P&L figures (001-517) plus the comparative retained profit figure (991) does not match the current year retained profit figure (991).
The difference usually happens as a result of amending the comparative P&L, the comparative retained profit or the current year retained profit figure, causing a mismatch between the figures.
Equation: 001-517 (comparative year) +991 (comparative year) = 991 (current year)
If this equation does not match, then there will be a retained profit error on the P&L.
In the example above, the retained profit is out by €10.
The difference can be manually checked by adding the P&L balances (001 – 517) in comparative year to the retained profit figure (991) in comparative year and comparing it with the retained profit figure in the current year.
Here you can see the comparative balance (€40 + €100 = €140) does not equal the balance of
991 (€150) in the current year.
You will need to adjust either the comparative figures or the current year retained profit figure so that the equation matches.
Current year figures can be adjusted with a journal posting in nominal ledger > journals > new.
Comparative year adjustments can be made in nominal ledger > chart of accounts > view > comparatives.
For example, if you change the 991 figure in the current year to (-€150) the error would be resolved.
Or, if you change the (-€40) to (-€50) in 001 in the comparative year, the error would also be resolved.
If you are unsure what the other side of the adjustment posting should be you can use code 381 which is the default rounding account for general expenses.
Any adjustments made to the accounts are your own responsibility.
If you are completely unsure about any adjustment, please check and confirm with your institute.
Another common issue that can trigger the retained profit error is when you post a transaction to a brought forward balance nominal code that has no comparative balances posted to it.
Any posting to a b/fwd code without a previous comparative balance will automatically trigger a retained profit error in the accounts.
To check for this posting issue, follow these steps:
- Go to the nominal ledger and select the trial balance option.
- Tick the box to show the reporting description on the top right.
- Look for nominal codes with reporting descriptions related to "b/fwd”
- Check if there are any current year postings to these codes without comparative balances.
In the example below, there are postings to two brought forward codes (661 & 991), but no comparative balances which will automatically cause a retained profit error.
To resolve this, you have two options
- Enter the comparative balances for those codes in nominal ledger > chart of accounts > view > comparatives.
- If it is the company's first year of trading, move the postings to a different nominal code that does not have b/fwd in the reporting description.
If you are still having trouble after following the above steps please contact support on 01 494 0580 or email firstname.lastname@example.org