Question
As part of the Nominal Ledger Month End Process, how do I journal the balance on the Profit and Loss to the Balance Sheet?
Answer
Go to Accounts > Nominal Ledger > Journal Entry > Journal and ensure you have selected the period you are trying to close, which should be the earlier period.
Enter the Posting Date and Reference and click Next.
You will then need to complete the journal by moving the balance in the Transfer to Balance sheet nominal to the Retained Profit and Loss nominal.
Depending on your system setup these nominals may have different names but ordinarily can be found towards the bottom of the Profit and Loss report.
Once the journal is complete, the value in the Month End section will update to Zero.
To view the full Month End Process guide, please click here.