Budgeting Control - Showing Balance as Closing Entry

Hi,

I recently enabled budgeting for a legal entity, uploaded the budget entry, the balances got updated automatically with the workflow.

Now, the problem is that my balances doesn't show in the current fiscal year but when I check the "Include closing entries" checkbox on budget analysis form, it shows the balances that I created in the entry. I have checked the Header and Line dates as well as Budget Cycle TimeSpan and all the dates refer to the current fiscal year. Due to this, I am getting budget exceeded error for all the accounts in the Account Structure even with amounts less than the balance.

What did I miss ? 

P.S. The same config works perfectly in UAT.

Thanks.