QB generated an unrestricted net asset journal entry after I entered other entries. I now have a negative fund balance in balance sheet equity section. Is this ok? (2024)

‎December 10, 201809:59 PM

• QuickBooks Desktop

qbteachmt

It isn't a Real entry. It is your Net Income math value, for the first date of the new fiscal year.

The Net income from the date before gets closed to "Retained Earnings" which is often renamed to Unrestricted Net Assets. As you work on the previous year's financial data, that value will keep changing.

That net income is already seen in Equity for the current FY, so nothing really changed.

Whether that is "ok" or not, depends on the data. If your data is Right, then this is reflecting that status.

If you are new at using QB for a Not For Profit, I recommend the book Running QB for Not For Profits, by Kathy Ivens.

Please see my attached reporting image.

Hello there, @Rhuz. You can check your Chart of Accounts (COA) to see what transactions are associated with the account when you close this account.

Besides, Unrestricted Net Asset is your net income for the first date of the new fiscal year in QuickBooks. The net income from the date before gets closed to Retained Earnings which is often renamed to Unrestricted Net Assets. As you work on the previous year's financial data, that value will keep changing.

Also, I suggest consulting your accountant so they can guide you on how to deal with Unrestricted Net Assets whether toremove the accountor not.

Check this article to learn more about the chart of accounts in QuickBooks:Understand the chart of accounts in QuickBooks.

You can comment here if you have other concerns about managing your accounts in COA. I'm always around to help. Stay safe, and have a nice day ahead!

Thanks for getting back to us, @Rhuz.

I'll share some information about your follow-up question. As mention by our Allstar @qbteachmt above, Unrestricted Net Assets isn't a real entry as this is your math for the first date of the new fiscal year. That said, you can close this account via journal entry. You'll see the net income in the Equity account for the current Fiscal Year.

To create a journal, just go to +New and then Journal entry. Reach out to your account for proper recording of the accounts.

Want more details? Check out these articles below.

• How to view Retained Earnings account details.

• Understanding the Equity Accounts on Your Financial Statements.

• Manage default and special accounts in your chart of accounts.

In case you need help with other banking tasks, feel free to browse this link to go to the page:Find help with bank feeds and reconciling accounts.

Don't hesitate to reply anytime if you still have questions or concerns about retained earnings account. I'll be around for you. Take care and have a good one.

So I have the same issue ... what happens to this value ... the balance statements from 2021 only had Opening Balance Equity and Net Income which now in 2022 is now has Opening Balance Equity, Unrestricted Net Assets and Net Income. 2021 was the first year of this set of books.

This Unrestricted Net Assets is the Net Income from 2021 Dec 31, 2021 ... is there anything I need to do with this figure or does it carry throughout the whole year so long as there is not a negative net income?? Thanks Sylvia-Linda

Thanks for sharing your concern in this thread,elcoffice.

You can create a Journal Entry to help correct the balances. Please know that journal entries are the last report for recording transactions.I'd recommend consulting withyour accountant before doing so. They can provide guidance on which accounts to use while making sure your books are accurate.You can also find an account by clicking on this link:Find an accountant.

You can follow ShiellaGraceA's steps on how to create a Journal Entry. Also, I'm sharing thisgood reference to learn more about creating JE's:Create a journal entry in QuickBooks Desktop for Windows or Mac.

If you wish to review the entries, you can do so by going to thebottom pane of theMake General Journal Entrieswindow.

By default, only entries from the last month are displayed. To change or expand the list of entries, click from theList of Selected General Journal Entries drop-down list and select which period.

If there's anything else you need help with, just let me know. I'm always happy to assist. Stay safe and have a great day ahead.

It's glad to see you here in the Community, @Paula326. Thanks for reaching out to us.

Retained Earnings, which is commonly renamed Unrestricted Net Assets, is the term used to close out Net Income from the prior year. That value will keep adjusting as you work with the financial information from the previous year. The Unrestricted Net Assets in your Transaction Detail by Account report are listed as a lump sum because it doesn't show the actual transactions.

However, you can view the transactions linked to the Unrestricted Net Assets account by looking at your Chart of Accounts (COA). The chart of accounts lists all your company's accounts and their balances. QuickBooks uses this list to track your business cash flows. You can read this article for more details: Work with the chart of accounts in QuickBooks Desktop.

You can check out these articles as resources for managing your financial statements in QuickBooks Online:

• Understanding the Equity Accounts on Your Financial Statements.
• Understand reports.

Keep me posted if you have further questions about the Unrestricted Net Assets account or any QuickBooks-related concerns. I'm always here looking forward to assisting you. Have a wonderful day.

Thanks for getting back on this thread, @Paula326.

You'll want to modify your report by Sorting out and using the Filter to customize it by class. This way, you can provide each class its Transaction Detail by Account report.

Moreover, you might want toexport your report to Excel from QuickBooks Desktop. This way, you'll be able to alter the report based on the needed information.

In addition, you can find out more about personalizing your reports and saving their customization settings for future use by checking out these articles:

• Customize reports in QuickBooks Desktop
• Create, access, and modify memorized reports

You can always reply or reach out to us again if you need anything else with QBDT-related tasks. We're always here to guide and assist you whenever you need help. Keep safe always!

This equally happened to me. Pls how do I correct this?

Thanks for joining the thread, @yeye.

As mentioned by our Allstar @qbteachmt, Unrestricted Net Assets is not an actual entry as it only represents your math for the first date of the new fiscal year. However, you can close this account by making a journal entry. The net income for the current fiscal year will be reflected in the Equity account.

Also, I suggest consulting your accountant for guidance on how to handle Unrestricted Net Assets, including whether toremove the accountor not.

You might want to customize data and add or delete columns on your report, check out this article:Customize reports in QuickBooks Desktop.

Feel free to reach out if you have any further questions about the Unrestricted Net Assets account or any QuickBooks-related concerns. We'll be happy to assist you.