How To Fix 0D424 - Contract account &1 must be managed on an open account basis

0D424 - Overview

• Message type: E = Error

• Message class: 0D - FS-CD General Messages

• Message number: 424

• Message text: Contract account &1 must be managed on an open account basis

What causes this issue?

The contract account has an account category that permits contracts for
which account balance interest calculation has taken place. This means
that it must be managed on an open account basis.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 0D424 - Contract account &1 must be managed on an open account basis ?

  The SAP error message "0D424 Contract account &1 must be managed on an open account basis" typically occurs in the context of contract account management within the SAP system, particularly in the Utilities or Financial Services modules. This error indicates that the specified contract account is set up in a way that requires it to be managed on an open account basis, but the current operation or configuration does not align with this requirement.
  
  Cause:
  
  Configuration Settings: The contract account may be configured to require open account management, but the system is trying to process it in a way that does not comply with this requirement.
  Account Type: The account type or category may not support the operations being attempted, such as billing or payment processing.
  Data Inconsistencies: There may be inconsistencies in the data related to the contract account, such as missing or incorrect settings.
  
  
  Solution:
  
  
  Check Account Configuration: 
  
  Navigate to the contract account settings