Retained Earnings

What does it mean when the retained earnings have purchase and sales invoices and how do you remove them so that the retained earnings can only have the profit from the income statement?

You will need to post a screenshot what you refer to specifically

There are also bank balances appearing in the retained earnings…How do I remove them out of the retained earnings

Retained Earnings is the sum of all previous sales and expenses so it is normal that it includes your purchase invoices

Also when we ask for copies of the screen, please do not post photos as it is difficult to read them properly - use a screen image tool such as the default one available in Windows

What version of Manager are you using?

@getrude_shilongo these purchase invoices and bank account balances appear to be your starting balances. Correct? I assume your start date is set to March 1, 2018.

The sum of all your starting balances = retained earnings.

Ok… the purchase invoices and sales invoices I understand now. What about the banks opening balances, are they also supposed to be in a retained Earnings?

The version I have is 20.8.33

As Lubos said, the balance of the Retained Earnings account = sum of all your starting balances

Have a look at the Starting Balances Report to understand the reason - otherwise your starting balance sheet would not be in balance

our accounting Department does this

@TomasJerry, your accounting department should not be removing invoices. The way to make Retained earnings match the current net profit is to transfer earnings from prior accounting periods to some other account with a journal entry or distribute earnings.