.png){kind=spacer}
QUESTION:
Why do changes to disbursement values or chargeability affect retained earnings.
RESPONSE:
Disbursement entries are accounted for using their transaction date therefore modifications to unbilled disbursement values or changes in chargeability are considered entry corrections and will affect the respective profit & loss as well as retained earnings measures if the entries are dated in a prior fiscal year. With regular visibility of unbilled entries as part of the billing management workflow regardless of the matter is being due to be billed or not; this type of situation should be rare and not material, requiring no further user action. However, if the user wants to journalize the impact of the change to the current period, the user must apply and post the reversing journal entry on the last day of the fiscal year to reverse on the first of the following fiscal year to non-master GL accounts created by the user for this purpose. Users must not make journal entries to master GL accounts, as these GL accounts are for use by system operations, so they must remain in balance with transactional data which excludes journal entries. These sister GL accounts can be assigned to the same financial statement grouping line as the corresponding master GL account for presentation purposes of desired balances.
Please note that this is a requirement for support to be able to perform programmatic tasks when there is a perceived imbalance between transactions and the GL account operations. If during this process user created journal entries are deemed to be the cause of the imbalance the analytical work performed becomes chargeable at current rates.