2023: This is still an unanswered question. If an item has its income or expense account adjusted, will the affect be retroactive to previous transactions?
Example: I set up and purchase Widget A into inventory in October with income account 1 and expense account 1. I sell the item in November. The transaction applies cost to the original expense account 1 and revenue applies in income account 1 that were set up in October. November business concludes with both values in the appropriate accounts.
I then decide that I need to change both the income and expense accounts for Widget A in December.
Will the sale of Widget A in November credit the original accounts and credit the new ones that I changed them to in December, and apply that change to the concluded month of November?
If the answer is yes, what affect does actually closing the accounting periods at month's end have on these transactions?
