Running the Balance Carryforward Program

Objective

After completing this lesson, you will be able to understand when to use the balance carryforward program

The G/L Balance Carryforward Program

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. 

The figure illustrates the transition of account balances from the old fiscal year to the new fiscal year. The Balance Carryforward process involves transferring the closing balances from the old fiscal year to the new fiscal year.

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.

You can run the balance carryforward using the Schedule General Ledger Jobs app to schedule the Balance Carryforward job.

It carries forward balances for all account types (G/L, Receivables, Payables, Assets), and all currencies to the new fiscal year, and you can run this job as often as you wish.

In addition, you can use the Balance Carryforward Status app to view details about the balance carryforward, such as the status, when it was run, and more.

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