Net Income Account

Enter the equity account you want to use as the posting account for net income (profit and losses) for each period. The Net Income account number should be different from the Retained Earnings account number. If you do not know the account number, you can click the search button or press the F5 key to display the General Ledger Account Search screen. Since only equity accounts are allowed, the search screen will display only equity accounts. When you close a period, balances from expense and income accounts are transferred and accumulated in the net income account, and the expense and income account balances are set to zero. Thus, the net income account contains the total net income for the period.

 

 

You should not post manual journal entries to this account. This will ensure that your net income account balances will be accurate.

 

 

Retained Earnings Account

Enter the equity account you want to use as the posting account for net income for each year. The Retained Earnings account number should be different from the Net Income account number. If you do not know the account number, you can click the search  button or press the F5 key to display the General Ledger Account Search screen. Since only equity accounts are allowed, the search screen will display only equity accounts.

 

When you close the year, the balances from the net income account are transferred to the retained earnings account, and the balance for the net income account is set to zero. Thus, the retained earnings account contains the total net income for the year.

 

You should not post manual journal entries to this account. This will ensure that your retained earnings balances will be accurate.

 

Suspense Account

Enter the account you want to use as the posting account for journal entries whose account does not exist in the General Ledger chart of accounts. If you do not know the account number, you can click the search button or press the F5 key to display the General Ledger Account Search screen. Any General Ledger account may be selected but it is recommended that an equity account be used. For more information about the suspense account, see the Updating General Ledger chapter.

 

•When you Release Accounts Payable the default suspense account comes from the default account set up in Company Maintenance.

 

 

 

•When you close the period or year, the default accounts come from the settings in Company Maintenance.