It is the end of my fiscal year but my In/Out account is not zero.
How do I adjust my In/Out account?

First, you need to deturmine if it is necessary to carry the balance forward. There are cases when a balance in an In/Out internal account would not be carried forward. An example would be when funds are collected to pay for camp. If more money was spent than collected and it is unlikely that the money will be collected, then the adjustments below are not needed. Enter a transfer entry bring the in/out internal account to a zero balance. If funds have been collected but not spend, nothing needs to be done to carry the balance forward for an internal account. These balances will carry forward automatically.

Money in an in/out expense account should only be carried forward if the money needs to be accounted for in the next fiscal year. If it isn't necessary to carry the funds forward, then no action is necessary. Expense accounts will automatically zero out at the beginning of the new fiscal year.

Two adjustment entries will be necessary to carry funds in an in/out expense account into the next year.

  1. Post an expense adjustment in the current fiscal year. Example: At the end of the fiscal year, more income has been received in the In/Out account than has been paid out. To adjust for this, enter a negative expense adjustment to bring your account to a zero balance. See the example below.
  2. After starting the new fiscal year, another expense adjustment must be made to reverse the expense adjustment at the end of the previous fiscal year. Enter an expense adjustment that is the exact opposite of the previous expense adjustment. In the example, enter a positive expense adjustment to bring the expense account balance back to what is was before posting the first adjustment. See the example below.

End of Fiscal Year Adjustment for In/Out account with a negative balance.

In/Out End of year adjustment

Beginning of Fiscal Year Adjustment for In/Out account with a negative balance.

In/Out Beginning of year adjustment