Note: You can see the ending balances on reports, such as the Year-to-date Ledger, Trial Balance, and other Financial Statements; or in other reports and inquiries using the End Balance X Year(s) Ago fields ("X" being the number for how many fiscal year ends ago).

The beginning balances at the start of the new fiscal year are the result AFTER the closing entries. The beginning balance for Retained Earnings at the start of the new fiscal year will reflect the new balance after the closing entries, while the beginning balances for the Income, Cost, Expense, and Other Income account types are set to 0.00.

Note: You can see the beginning balances on a Year-to-date Ledger for the first period of the new fiscal year or on a Financial Statement trial balance design (TBalAccr or TBalCash) ran for the first period of the new fiscal year.

If there are prior year adjustments that have not been closed yet, the beginning of the new fiscal year will appear out of balance by the amount of the adjustments as they have not been updated to Retained Earnings. For more information about prior year adjustments, see the following articles:

• DocLink: How can I confirm if I have prior year adjustments in GL?
• DocLink: How do I reclose the prior fiscal year in General Ledger after posting prior year adjustments?
• DocLink: How does the retained earnings balance get updated when I make a prior year adjustment in General Ledger?

For more information about how the fiscal year end closing works, refer to the articles in the Related Resources.

DocLink: What happens when I use the Close Fiscal Year task in General Ledger?
DocLink: How does the Close Fiscal Year task affect a retained earnings account in General Ledger?
DocLink: How do I verify retained earnings balances in General Ledger?

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