Current Year Earnings Account
The Current Year Earnings account value is calculated automatically as sales and other business transactions that impact income and expense accounts, are recorded. Its balance equals income minus cost of sales and expenses. Current year earnings are zero at the beginning of a fiscal year. Current year earnings are kept as a running total as the fiscal year progresses. When you start a new fiscal year, the balance of the current year earnings account is reset to zero, and its balance to transferred to the retained earnings account. You cannot post to this account; its balance is automatically adjusted by AccountEdge.