How To Fix 1F640 - Account is reference account of an account in interest compensation

SAP Error Message - Details

• Message type: E = Error

• Message class: 1F - BKK: Beziehungen

• Message number: 640

• Message text: Account is reference account of an account in interest compensation

What causes this issue?

You want to use account &V1&/&V2& as a root or subaccount of an
interest compensation hierarchy. The account is referred to by account
&V3&/&V4& as balancing reference account though. As that account is
also part of an interest compensation hierarchy this reference is not
allowed.

System Response

Error message. The account can not be included into the hierarchy.

How to fix this error?

Remove the reference ( change account &V3&/&V4& ) and continue to
create or enhance the hierarchy.

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 1F640 - Account is reference account of an account in interest compensation ?

  The SAP error message 1F640 indicates that the account you are trying to use is a reference account for another account that is involved in interest compensation. This typically occurs in the context of financial transactions where accounts are linked for the purpose of calculating interest or managing financial relationships.
  Cause:
  The error arises when:
  
  You attempt to post a transaction to an account that is designated as a reference account for another account that is involved in interest compensation.
  The system prevents changes to the reference account to maintain the integrity of the interest compensation calculations.
  
  Solution:
  To resolve this error, you can consider the following steps:
  
  
  Identify the Reference Account: Determine which account is the reference account and which account it is linked to for interest compensation. You can do this by checking the account settings in the SAP system.
  
  
  Review Account Settings: Check the configuration of both the reference account and the related account. Ensure that the accounts are set up correctly for interest compensation.
  
  
  Modify Transaction: If you are trying to post a transaction to the reference account, consider posting to a different account that is not a reference account.
  
  
  Consult with Finance Team: If you are unsure about the implications of changing account settings or posting to different accounts, consult with your finance or accounting team to ensure compliance with financial policies.
  
  
  SAP Configuration: If necessary, review the configuration settings in the SAP system related to interest compensation. This may involve checking the settings in the Financial Accounting (FI) module.
  
  
  Documentation: Refer to SAP documentation or help resources for more detailed information on managing reference accounts and interest compensation.
  
  
  Related Information:
  
  Interest Compensation: This is a financial process where interest is calculated and compensated between accounts, often used in banking and financial services.
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes that may help you navigate account settings, such as:
  
  FS00: For managing G/L accounts.
  OB52: For managing posting periods.
  
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  
  If the issue persists after following these steps, it may be beneficial to reach out to SAP support for further assistance.