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Applies to Product – Dynamics 365 Finance


What’s happening?
Incorrect dimensions for retained earnings accounts are posted during the year-end posting, leading to discrepancies in financial reporting.


Reason:
The dimension value specified for the retained earnings account will not impact the year-end close process. It will only be effective when posting manual journals to this account. The unexpected dimension values observed in the opening transactions for this account are likely inherited from the source balance sheet and profit and loss accounts.


Resolution:
Modify the year-end close template going to General ledger> Period close> Year end close> Year end close template setup option.

  1. Set "Transfer balance sheet dimensions" to No.
  2. Set "Transfer profit and loss dimensions" to Close single, leaving blank any dimensions not specified in the account structure.
  3. For the specific dimension, set the value accordingly. 
 
Note that if the option for transferring balance sheet dimensions is set to No, all dimension values will be set to blank, as you cannot specify desired dimension values for balance sheet dimensions at this time.
 
For further reference, consult the article: Year-end close - Finance | Dynamics 365 | Microsoft Learn.