Definicja adjustment to retained earnings

An adjustment to retained earnings occurs only if the appropriation of net income is located after the income statement.

The adjustment automatically generates two line items: one posts to the retained earnings item in the balance sheet, and the other posts to the transfer item for net income at the end of the income statement.

When a document is posted, an automatic adjustment is made only if the balance of all (normal) line items referring to the balance sheet is not equal to zero; The balancing entry is then made to the balance sheet.