While trying to manually enter a journal entry in Sage X3, the following error message may appear stating that “Profit and loss account not defined”.
To manually define profit and loss account, go to:
Parameters -> Organization structure -> Companies
Under the Accounting tab, mark the Retained check box as shown below.
Create a Retained Earnings account by accessing account creation function under:
Common Data G/L Accounting tables Accounts
Add this account to your Chart of account by going into,
Parameters Organisational structure Chart of Accounts
Now, go to the Miscellaneous Accounts Tab as shown below and add Retains Earnings account in the grid.