Introduction
Greg has reviewed the year-end close steps and is interested in how the balance carried forward program works. He will need to know the timing of when it can be executed and what happens if journal entries are posted after the program is run.
G/L Balance Carryforward
The balances on the balance sheet accounts are simply carried forward into the new Fiscal Year by executing the balance carry forward program. You can run this job as often as you wish, and if there are subsequent postings to the previous Fiscal Year, the balance carryforward is automatically corrected. Generally, it isn't necessary to repeat the balance carryforward.
When the system performs balance carryforward for the G/L accounts it automatically performs balance carryforward for the vendor, customer, and assets accounts as well. All currencies are also included.
In contrast to the G/L balance sheet accounts, the P&L accounts must have a zero balance for the new fiscal year, therefore, the P&L accounts are carried forward to a G/L retained earnings account.