About YTD net income and retained earnings accounts

In Visma Net, there are two special system-maintained accounts: YTD (Year-to-date) net income and Retained earnings.
Both accounts are of the Liability type and must be created in the Chart of accounts (GL202500) window before any actual data is entered.

The YTD net income account tracks net income accumulated since the beginning of the financial year or the difference between amounts posted to income and expense accounts. This account is updated by every transaction posted. During closing of the financial year, the balance of YTD net income account is transferred to the Retained earnings account, and the balance of YTD net income is reset to zero for a new financial year.

The Retained earnings account accumulates the company’s net income (or loss) that is retained by the company after the dividends have been paid.
Retained earnings are summarised over the years since the first year of company operations.
During the financial year closing, this account is updated by the amount accumulated on YTD net income account.
You can post direct transactions to this account, such as dividends paid to shareholders.
This account is normally reported in the Shareholders' equity section of the balance sheet.

Related reference
Chart of accounts (GL202500)