Reporting Unappropriated Profit on Balance Sheet

v24.24, JA-1058

Overview

In versions prior to 24.24, the GL Account linked to "Profit & Loss Appropriation" was not being utilised for the P&L appropriation calculation when reporting the Balance Sheet.

The Unappropriated Profit/Loss calculation will now report on the Balance Sheet against the Account that is Linked. This enables the balance to be adjusted via a GL Journal. For example - Appropriate prior years profit.  

Setup

JAIX Accounts > General Ledger > Linked Accounts

Setup of the Profit & Loss Appropriation linked account is optional.  If not specified the Unappropriated Profit will continue to report on the Profit & Loss reports exactly as it does in prior versions

Functionality

When configured, the Unappropriated Profit/Loss calculation will now report on the Balance Sheet against the Account that is Linked.

This enables the balance to be adjusted via a GL Journal.

For example - Appropriate prior years profit.  

Journal out your Unappropriated Profit (up to) 30th June 2022 $5,000. The Unappropriated Profit calculation for 2023 is $1,000. The Balance Sheet will report P&L Appropriation as at June 2023 as $1,000 (IE You have appropriated prior years profit to Equity Accounts  - seek your Accountants advice on these). 

In summary, when configured, it is now possible to adjust your Unappropriated Profit/Loss on Balance Sheet by journaling to the linked General Ledger Account.