I believe that this results from using departments in your GL, and in the department setup you have not included the retained earnings account for at least one department. The error message is misleading.

Check the departments under edit departments (in Ledger) and update the department details for the R/E account to close out to, and then rerun.

Best,
Brian
_________________________
Brian Stief,CPA,CA
Stief Group www.stiefgroup.com
Link2 Systems www.link2systems.com
800.540.3164