On Sun, Apr 25, 2010 at 11:38 PM, Luke <account...@lists.tacticus.com> wrote: > On Sun, 25 Apr 2010, Chris Travers wrote: > >> In LedgerSMB 1.2.x the yearend routine is not substantially changed >> from that of SQL-Ledger. >> >> Neither one handles drawing accounts. The version in 1.3 doesn't >> handle drawing accounts either (this will probably done in 2.0). > > Fine, that's what I thought. However, what then is the meaning of this > from the manual? > > Equity drawing/dividend accounts are also moved, but the investment > accounts are not.
Accounting process. That's something the software doesn't automate. I will look at clarifying it. Basically you can divide accounts into three rough categories: 1) Assets and obligations regarding assets (Asset + liability accounts) 2) How much money was earned and spent including payments to owners (Income, expense, and some equity accounts) 3) Tracking investments in the business (capital + retained earnings accounts). Only the second category of accounts is closed out in year-end. The difficulty comes from the fact that some equity accounts are closed at the end of the year and others are not. The software currently handles income/expense accounts, but the equity accounts which need to be closed (dividend + drawing accounts) are not. You COULD reclassify equity accounts which are to be closed as expense accounts during the year-end run and then alter them back. The other option is to do year-end in the software and then close out the equity accounts which are to be closed in a separate GL transaction. Hope this helps. Best Wishes, Chris Travers ------------------------------------------------------------------------------ _______________________________________________ Ledger-smb-users mailing list Ledger-smb-users@lists.sourceforge.net https://lists.sourceforge.net/lists/listinfo/ledger-smb-users
