How To Fix 1E620 - Caution: Account has a reference account for balancing

SAP Error Message - Details

• Message type: E = Error

• Message class: 1E - BCA: Account

• Message number: 620

• Message text: Caution: Account has a reference account for balancing

What causes this issue?

For this account there is also a reference account stored for the
balancing.

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 1E620 - Caution: Account has a reference account for balancing ?

  The SAP error message 1E620 ("Caution: Account has a reference account for balancing") typically occurs in the context of financial transactions, particularly when dealing with accounts that are set up for balancing entries. This message indicates that the account you are trying to post to has a reference account associated with it, which is used for balancing purposes.
  Cause:
  
  Reference Account Configuration: The account you are trying to use is configured with a reference account for balancing. This means that any postings to this account will also require corresponding entries in the reference account.
  Posting Logic: The system is alerting you that the transaction you are attempting may not be balanced correctly due to the reference account setup.
  Transaction Type: Certain transaction types may require specific handling when reference accounts are involved.
  
  Solution:
  
  Review Account Configuration: Check the configuration of the account in question. Ensure that the reference account is correctly set up and that you understand how it affects postings.
  Post to Reference Account: If necessary, make sure to post to the reference account as well to ensure that the transaction is balanced.
  Consult Documentation: Refer to SAP documentation or your organization's financial policies to understand how to handle transactions involving reference accounts.
  Transaction Type Adjustment: If the transaction type you are using is not appropriate for the account setup, consider using a different transaction type that aligns with the account's configuration.
  Consult with Finance Team: If you are unsure about how to proceed, consult with your finance or accounting team for guidance on how to handle the transaction correctly.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any specific guidance or updates related to this error message.
  Transaction Codes: Familiarize yourself with relevant transaction codes (e.g., FB50 for general ledger postings) and how they interact with reference accounts.
  Training: Consider training sessions or resources on SAP financial accounting to better understand account configurations and postings.
  
  By addressing the cause of the error and following the suggested solutions, you should be able to resolve the issue and proceed with your financial transactions in SAP.