Warn When Posting a Transaction to Retained Earnings
Enabling the Warn When Posting A Transaction To Retained Earnings option means that QuickBooks displays a warning message when you try to post an amount to the Retained Earnings account. The message explains that in QuickBooks the Retained Earnings account is designed to track profits, and the amounts that are posted to the account automatically are generated, not manually posted through a transaction. If this is a user who doesn’t understand the account (or inadvertently chooses the account from a drop-down list), the warning message might prevent the user from going on (which is almost always a good thing). Enable this option by doing the following:
- Choose Edit | Preferences from the QuickBooks menu bar.
- Click the Accounting icon on the left pane to open the Accounting preferences, and click the Company Preferences tab.
- Choose the Warn When Posting A Transaction To Retained Earnings option by clicking the check box.