Journal Adjustments to a closed year

Epicor ERP 10
1

All,

Our Finance Team is curious if the following has been an issue among other Epicor users:

After making tax related AJEs, it has thrown our retained earnings balances all out of whack and we are struggling to get the trial balances to balance on each site. According to support, rather than posting income to a separate account and then to retained earnings at year end, Epicor recalculates retained earnings based on what it believes should be in the account based on the balance and the cumulative amounts from the income statement accounts. So the expectation from Epicor appears to be that no additional entries would be made to a closed year. For most companies, that is simply not possible as there are almost always tax entries that have to be made once the returns have been filed.

Support said this is intended to behave as it is now, and as the proposed fix to our problem, they suggested to change the future opening balances to update by manual journal entry. When this option is selected, the Opening balances are not transferred and you have to create an Initial Journal entry to enter the initial balances of each account for the new year. This isn’t exactly what we had in mind.
We would like to hear how others have worked around this…

We would like to hear how others have worked around this…

2

We’ve always re-opened the prior year, made the journal entries for the tax expense and liability, closed the period and ran “Transfer Opening Balances to Next Year”. When you do that, you have to select prior year to current year. The opening retained earnings are automatically updated with the opening balance transfer process.

This is in E9 and I don’t know if anything has changed in E10.

….Tim