Small and medium business | Business Central, N...

Shld we compare the numbers between Closed Income Statement vs Income Statement in COA?

(4) Share

Report

Posted on by joshtechsolutions

4,979

Hi Community,

I'm trying to teach my accounts how to use the Close Income Statement, one of my accountant compares the numbers in the Retained Earnings of Closed income Statement to the Income Statement at COA.

This is the report side of Income Statemenet report..

This is the Closed Income Statement report.

Please advise what is the difference ?

Thank you !

Categories:

Dynamics 365 Business Central

Microsoft Dynamics NAV

I have the same question (0)

All responses (8)

Answers (0)

Suggested answer

Gavin 2,508 on at

Like (2)

Report

Hi,

The close income statement routine moves the balance from every income statement code to the retained earnings account, so the balance posted to the retained earnings account should match the balance of the income statement GL codes.

I’ve created this blog for business central on the different options available when closing the income statement which I hope will help.

https://thedynamicsexplorer.com/2024/11/13/dynamics-365-business-central-exploring-the-different-options-when-running-the-close-income-statement-routine/

Thanks

Gavin

Was this reply helpful? Yes No
joshtechsolutions 4,979 on at

Like (2)

Report

Hi Gavin ,

Thank you for your reply, but I i think you might have misunderstood my question.

I'm asking what is the difference between this income statement at COA report tab

and this one... closing income statement. and COA Home tab.

Was this reply helpful? Yes No
Gavin 2,508 on at

Like (2)

Report

Hi,

Apologies. I’m not able to access the system to check but I assume the one on the “home” tab under the “process” section is the close income statement routine that is ran at year end. To my recollection, and certainly in business central, this doesn’t create a report as such. It creates the journal to close the income statement accounts to retained earnings. I suspect the one on the report tab produces a report of what would happen should you run the routine. (Unfortunately I can’t check right now though)

I hope this helps

Thanks

Gavin

Was this reply helpful? Yes No
Suggested answer

Khushbu Rajvi. 20,643 Super User 2025 Season 2 on at

Like (3)

Report

Yes, you can compare them, but they serve different purposes—Income Statement in COA shows live, filter-based profit/loss, while the Closed Income Statement reflects finalized year-end results posted to Retained Earnings. Differences usually come from date filters or missing closing entries.

Was this reply helpful? Yes No
joshtechsolutions 4,979 on at

Like (2)

Report

Hi Khushbu Rajvi.

Thank you for your reply!

Can you give me some hints where can I find the entries of whether they are closed or still open?

Is it in Value entries or general ledger entries?

I have a few dollars which is missing when I compares the two income statement, so wondering where do I search for this.

Thank you!

Was this reply helpful? Yes No
Suggested answer

Jainam M. Kothari 15,639 Super User 2025 Season 2 on at

Like (1)

Report

Hello,

Income Statement Report in the Chart of Accounts:

This Report offers a comprehensive overview of your company's revenues and expenses for a given period. It aids in assessing your business's profitability by displaying the net income (or loss) after deducting all expenses from revenues. In summary, the Income Statement report in the Chart of Accounts is intended for evaluating financial performance.

Close Income Statement:

This Function is utilized at the conclusion of an accounting period (such as a month, quarter, or year) to move the net income or loss to the retained earnings account on the balance sheet. It essentially clears the income statement accounts, setting them to zero and readying them for the upcoming accounting period. In summary, the Close Income Statement function is designed to finalize and reset accounts at the end of an accounting period.

Was this reply helpful? Yes No
Vahid Ghafarpour 12,183 Super User 2025 Season 2 on at

Like (2)

Report

If any of the responses helped resolve your issue, please take a moment to mark the best answer. This helps others in the community quickly find solutions to similar problems.

To do this, simply click the "Does this answer your question?" button on the most helpful response and like the helpful posts. If your issue is still unresolved, feel free to provide more details so the community can assist further!

Thanks for being an active part of the Dynamics 365 Community!

Was this reply helpful? Yes No
Suggested answer

Khushbu Rajvi. 20,643 Super User 2025 Season 2 on at

Like (3)

Report

Please check this, if it helps: https://www.encorebusiness.com/blog/year-end-close-d365-business-central/

https://learn.microsoft.com/en-us/dynamics365/business-central/finance-chart-of-accounts

https://community.dynamics.com/forums/thread/details/?threadid=5ff33b94-46d9-ef11-a730-7c1e52588027

Was this reply helpful? Yes No