When you run the year end routine on the General Ledger in Dynamics GP the system automatically creates a journal to bring forward the balances for the Balance Sheet codes and it also closes all the profit and loss codes to the retained earnings account.
When you look at the header of the year end journal that’s created it shows a source document of BBF (Balance Brought Forward)
However if you take a closer look at the year end journal in smartlist you can see that some of the lines have a source document of “P/L”.
So why the mixture of BBF and P/L source documents for the year end journal?
The BBF entries are created to bring forward the balances of the “Balance Sheet” accounts and the “P/L” entries are created by closing the profit and loss accounts to the retained earnings account. As my demo data has multi currency postings to various profit and loss codes I get one entry per currency.
To confirm the correct amounts have been posted to the retained earnings account I can run the query below in SQL that sums all the amounts posted to the profit and loss accounts for the year 2024, and this reconciles back to the amounts posted to the retained earnings account on the year end journal:
The BBF entries are quite well known but I couldn’t find much information on the P/L source document which is why I created this post.
Thanks for reading!