About the GL Beginning Balance Update Form
The GL Beginning Balance Update form is run at the end of the year to update beginning balances for the next year.
Its function is similar to a year-end closing entry. It may be rerun to allow the user to make adjustments to the year just ending and correct the beginning balances of the new year.
Since most companies are not able to close their books for perhaps several months beyond their fiscal year-end, this program allows them to update records and obtain financial statements on a new year while still leaving the old year open for further adjustments. As the program is rerun and beginning balances are adjusted, trial balances and financial statements may also be rerun to reflect these updates.
You may run this program as often as necessary prior to closing the year in GL Month End Close.
All balance sheet accounts will have their ending balances brought forward as beginning balances. All income and expense accounts will have beginning balances of zero. One account (usually Retained Earnings) should be set up in GL Account Codes as type P. This account will have the net profit/loss added to it during the running of this program.