Trial balance report behavior when "Show unclosed fiscal year's P&L balances" should change

ERPNext Accounting
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1

There is some strange behavior when running trial balance report in the case of unclosed fiscal year
It is well known for any accounting professional that PL accounts is a temporary accounts and it should be related to the fiscal period only and since you add the option “Show unclosed fiscal year’s P&L balances” the balances of the PL accounts in the opening should be aggregated in retained earnings to avoid the accumulation for the PL accounts
So in my opinion this should be change and you should do summation for the net of the opening year accounts belong to PL in account called “Previous years results”
The following is the screen shot of the report

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Moreover the above please do something for the custom date range trial balance report as any accountant need this report

2

@NCP Any idea about this

3

Check Period closing voucher to see if previous year is closed and difference is moved to retained earnings.

4

@Pawan , Thank you for reply
but this topic is related to check box of “Show unclosed fiscal year’s P&L balances” as it is giving inaccurate results for the PL Accounts
I can say it in a very clear words, trial balance and other financials should be revisited by the developers because its output is not professional output in case of using “Show unclosed fiscal year’s P&L balances”

5

If you have closed previous fiscal year using period closing voucher and uploaded opening balances properly you should not have this problem.

You may need to compare with General Ledger report to see why there is a difference etc.

Kindly avoid tagging as this is a voluntary reply.

6

Actually I understand that there is option for closing the fiscal year, but practically too many accountants not closing the fiscal year and only using the option of “Show unclosed fiscal year’s P&L balances” included in the trail balance report
if what you mentioned is accurate this means the developer should not add the check box of “Show unclosed fiscal year’s P&L balances” in the trial balance
the check box of “Show unclosed fiscal year’s P&L balances” is to server one purpose which is “if the accountants don’t want to close the fiscal year and need to review the report”
what I’m saying is if you have such an option you should present the report in a good and professional way not in a way that can cause confusion and can give a misleading information
The developers of ERPNext should visit again the financial reports and redevelop it to be compatible with the best accounting practices and standards

7

Anybody from ERPNext development team can discuss this
Why is the team ignoring!??!!
this is particularly critical point from Accountant perspective