I have a capital loss in the system generated account for capital gains.
I want to journal it to a Balance Sheet account at end of year so it does not affect the P/L.
When I create the journal it does not affect the capital gains account but instead adds it to the suspense account. The Capital Loss account i created has the correct amount, its just the other side of the journal that goes into suspense account not the capital gain account.
I’m sorry, but your narrative is incomprehensible. You write about both system- and self-generated accounts with unclear purposes. Suspense account balances indicate mistakes awaiting correction. And your purpose for any of what you discuss is a mystery.
Please provide a logical explanation of your accounting goals.
When you Create Investment and you sell them for a gain or loss, the gain, or loss is applied to an account that the system creates. This is in the P/L.
So in the P/L I have an account now called Capital Gains with a value of -$400. capital losses cannot be used to offset profit only capital gains.
Therefore I want to journal that -$400 to the balance sheet to be applied to future gains.
Thank you. That was clear—particularly including the previously undisclosed fact that you were discussing investments.
Apologies for not being clear.
When I create the journal, I want it to set the capital gains account to zero and set the Capital Loss account in the Balance sheet to -$400.
It does not do that.
The Capital Loss account has the correct amount, The capital Gain account is unchanged and the other side if the journal goes into the suspense account.
It would appear that you cannot add entries to the Capital Gain account, only the system can do this when you sell an investment.
You can also create a new account below the system account named Less capital loss carried forward to transfer the capital loss preferably to a negative equity account instead of an asset account.
The problem is I am not able to journal out the capital loss from the system generated account it just will not apply the transaction.
You can use another account to minus the capital loss from the profit and loss statement.
I think you are missing what I am saying . The issue is you cannot remove the capital loss form the system generated capital gains account.
Its not the destination account that is the issue.
If you tested this yourself, you would see what I mean.
If I could send screenshots you would see what I mean.
There is nothing stopping you from adding screenshots to your replies
But this is possibly a bug, in that the account in question (Capital gains in Investments) is not allowed in journal entries.
However, you could argue that the loss is real and should affect your P & L - they question is how should you account for the fact that tax laws allow you to carry forward the loss
Manager only produces P & L accounts not tax accounts which need all sort of adjustments to be made
Yes Joe I understand what you are saying.
The tax laws in Australia do not allow for capital losses to reduce the profit in the current year.
They can only be offset against capital gains.
So in the current year if there is a loss and no gain they have to be moved off the P/L for the current year.
I can deal with it from a tax return perspective but I still need to work out how I deal with it in Manager software.
That is the issue.
Do what Tony suggested, create a new account - Capital Losses Carried Forward in the expenses section and use that to remove the losses from your P & L and add them to an Capital Losses carried Forward account on your Balance Sheet
Do not try to mix Accounting and P/L reporting with Tax related schedules. Manager has a setup which allows for execution of prudent accounting.