Why is Current Profit/Loss at Balance Sheet different from Profit/Loss report

8.1. Why is Current Profit/Loss at Balance Sheet different from Profit/Loss report

Commonly when there is a difference in the P&L and BS this usually indicates that
  1. Year end closing was not done for a period. (note this may apply to multiple periods)
  2. Adjustments were made after year end closing was done. ( note this also can apply cross multiple periods)

The guide below show you how to list the year end closing done.
if the issue was cause by Year end closing(YEC) not being done for a FY, you can use the YEC module to do the closing. 

How to list Year End Closings?
The Year End Closing  (YEC) module will generate GL entries.
you can view these entries using the GL module.

Assumption.
I have only 1 retained earnings account 

In GL module. 
Set date range to Balance.
Set account to retained earnings account.
Set Document to 'YE' (YEC module creates entries with documents that start with YE)



Filter by the retained earnings account will reduce the number of entries you see on screen.

The Post date column is the Financial Year this entry is for.
The Document column shows the document name in the format 'YE.YYYYMMDDHHmmss'. this is the actual date the module was run.
It is normal to have multiple rows for the same FY. 
You can run the YEC module multiple time to post new adjustments.

The guide below shows you how to check for adjustment 
if the FY has adjustments after the YEC was done, you can do the YEC process again to post the adjustments.

Adjustments after Year End Closing
Your auditor might ask you to generate Financial Reports and make audit adjustments post-YEC (Year End Closing).
In that case, use Journal Entry and/or Stock Adjustment modules to make adjustments.
With adjustments made, there might be outstanding balances in Expense, Cost & Income accounts.
Repeat Steps 1-4 in Year End Closing module again to post oustanding balances to Retained Earnings account.

To verify whether there any outstanding balances not yet posted to Retained Earnings account, go to {Report > Financial > Profit/Loss] and:
  1. Set "From" date and "To" date as your Financial Period's Start date and End date respectively.
  2. Tick "Include Current Year End Closing"
  3. Click "Refresh" button


With these filters, balances generated are outstanding amount not yet posted to Retained Earnings.
If there are outstanding balances, repeat Steps 1-4 in Year End Closing Generation module.
If there are no outstanding balances, proceed to close the Financial Period at A/C Setting module.

Below is a more detailed explanation on the how the report values are taken.
The balance sheet P&L is base follows the date range of the BS module.
this date range is "as at". this mean that the P&L values in the Balance Sheet is using as at.
the P&L module is using a "period" date range.  the range of values being looked at is different.
you can review the difference in the date range from the link below.

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