How To Fix 1F604 - Interest compensation method &1 is not defined

1F604 - Overview

• Message type: E = Error

• Message class: 1F - BKK: Beziehungen

• Message number: 604

• Message text: Interest compensation method &1 is not defined

What causes this issue?

Interest compensation method &v1& is not defined.

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?

Choose an interest compensation method that is defined (F4 help).

Error message extract from SAP system. Copyright SAP SE.

1F604 - Details

• The SAP error message 1F604 indicates that the interest compensation method specified in the system is not defined. This error typically arises in the context of financial transactions, particularly when dealing with interest calculations in accounts receivable or payable.
  
  Cause:
  The error occurs when:
  
  The interest compensation method is not set up in the system.
  The configuration for the interest compensation method is incomplete or incorrect.
  The specific method referenced in the transaction does not exist in the system.
  
  
  Solution:
  To resolve this error, you can follow these steps:
  
  
  Check Configuration:
  
  Go to the SAP Customizing Implementation Guide (IMG) by using transaction code SPRO.
  Navigate to Financial Accounting (New) > Accounts Receivable and Accounts Payable > Interest Calculation > Define Interest Compensation Methods.
  Verify if the interest compensation method you are trying to use is defined. If it is not, you will need to create it.
  
  
  
  Define Interest Compensation Method:
  
  If the method is not defined, you can create a new one by