I am not quite sure the function about posting to previous year in Adagio G/L. I mean, if i have an adjust entry for inventory
Dr: inventory write off $500
Cr: inventory $500.
Since I have alreay closed the year, all the income items have been closed to the retained earning account, i am wondering whether i should post the entry as it is, or i post entry like this:
Dr : Retained earning $500
Cr: Inventory $500
I hope i can get answer as soon as possible.
thanks

When you post a batch to prior year, you are asked to provide a source code used for Closing Entries. If the batch you are posting to a prior year contains any Income Statement accounts, the procedure automatically at the same time generates and posts the transaction that clears the I/S account and moves it to Retained Earnings. You do not have to create the entry involved with the R/E account.

If all of the accounts in the batch are Balance Sheet accounts, then of course retained earnings is not affected.

thanks a lot.