Reversal result previous fiscal year

Transferring the result of the previous financial year to retained earnings is a standard functionality in Lucanet. Why is this important? Because Dutch GAAP requires, among other things, that the result of the participation be transferred to the holding company or companies. By transferring the result, Lucanet can correctly check whether this has been done when eliminating participations. In most cases, the transfer takes place automatically when you import the first month of the new financial year cumulatively. Lucanet then transfers the result to retained earnings via the carry forward account.

However, this automatic transfer does not work well in two situations:

• When entries were made directly in Lucanet in the previous financial year that affect the result
• For foreign currency entities, because the transfer takes place at the exchange rate of the first month of the new financial year.

For these cases, many Lucanet customers have been using the app Carry forward retained earnings in posting environments for years. This app has now been replaced by a Next Generation app, which needs to be reconfigured once.

Step 1: Make sure you can create the Next Generation app

Go to Manage and Worksheets and select the worksheet where you want to place the app. Check in the worksheet properties whether the object type Next Generation app is allowed. This is necessary in order to add the app.

Step 2: Configure the app

Right-click on the desired worksheet and choose ‘New’ to create a Next Generation app.

Configuration of the General tab

Here you specify the following:

• The period for which the reclassification must be performed.
• The valuation dimensions to which the app should be applied.
• The companies to be included in the reclassification.

Configuration of the Reclassification tab

Then fill in the following fields:

• The balance sheet position of the Result for the current financial year.
• The contra account for posting the result of the current financial year. This is usually the carry forward account.
• The transfer account (equity) to which the result of the previous financial year must be posted.
• The correct transaction type for the posting.

Want to know more?

Does the carry forward account remain one of Lucanet’s mysteries, or are you still dealing with an unprocessed exchange-rate effect that is not being transferred? Feel free to contact one of our specialists at Arithma Consulting — we are happy to help!