When running the Close Income Statement process in Business Central, the system allows closing by Business Unit. However, only income statement accounts are closed by Business Unit. The retained earnings posting is the sum of all units which then has to be manually split out.

For organisations that use Business Units to segment financial activity, this limitation results in:

• Inaccurate retained earnings reporting per Business Unit
• Manual journal entries required to allocate retained earnings
• Additional reconciliation effort at year‑end
• Reduced usefulness of Business Units as a financial reporting structure

Business Units are designed to support multi‑entity or multi‑division reporting. Allowing retained earnings to close by Business Unit would:

• Improve accuracy of financial statements
• Reduce manual adjustments
• Support organisations with decentralised or divisional structures
• Align the Close Income Statement process with how income statement accounts are already handled

Please add an option to:

• Close retained earnings by Business Unit, in the same way income statement accounts are closed
• Or provide a configuration setting that allows organisations to choose whether retained earnings should be posted at the company level or per Business Unit

Impact

This enhancement would significantly reduce manual work and improve reporting accuracy for any organisation using Business Units for financial segmentation.