Good question. The short answer is:

1. Select Accounts | Equity Name Changes.
   
2. Change the Accumulated Prior Years’ Net Income to 0.

When you Begin a New Year, Navigator can automatically zero Net Income-Prior Years as you stated. After that, any income you add to prior years data will show up in the current year’s Net Income-Prior Years. Navigator will not automatically move it to Net Worth-Beginning. But you can easily do so by manually setting Accumulated Prior Years’ Net Income to $0. Since Net Worth-Beginning is a calculated number (see Net Worth Beginning.), Navigator will add the amount that was in Net Income-Prior Years to Net Worth-Beginning.

Net Worth-Beginning + Net Income-Prior Years (if used) + Net Income-Current Year + Unrealized Gains or Losses = Total Net Worth

There are two ways to use Net Worth-Beginning:

• Net Worth-Beginning is the net worth when you started using Navigator. For a new business, it would be $0 to start. At the close of each year, move Net Income-Current Year to Net Income-Prior Years.
  
• Net Worth-Beginning is the net worth at the start of the year (and the end of the prior year). S you begin a new year, zero Net Income-Prior Years.

Prior Year Net Income
Update Starting Balances
RETAINED EARNINGS
Net Worth Beginning
Retained Earnings
Net income-prior years on balance sheet
Net income wrong on Summary Balance Sheet
Equity Accounts

- David
FNI Technical Support
Case #38-10955

[This message has been edited by David (edited 02-10-2009).]