Current Earnings Account
The Current Year Earnings account value is calculated
automatically as sales and other business transactions
that impact income and expense accounts, are recorded. Its balance
equals income minus cost of sales and expenses.
Current year earnings are zero at the beginning of a fiscal year.
Current year earnings are kept as a running total as the
fiscal year progresses. When users start a new fiscal year, the
balance of the current year earnings account is reset to
zero because the balance amount is moved into the retained earnings
account. Users cannot post to this account;
it is for holding this calculation, only.