How To Fix AC302 - Account &3-&1 not allowed to be P&L account

AC302 - Overview

• Message type: E = Error

• Message class: AC - Error messages from Asset Customizing

• Message number: 302

• Message text: Account &3-&1 not allowed to be P&L account

What causes this issue?

Account &V1& is defined as a retained earnings account (for the profit
and loss statement).
This is incorrect for circumstances &V2&.

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?

Either change the account definition or assign a different account for
the given circumstances.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message AC302 - Account &3-&1 not allowed to be P&L account ?

  The SAP error message AC302 indicates that a specific account (identified by the account number and company code) is not allowed to be a Profit and Loss (P&L) account. This error typically arises in the context of asset accounting or financial accounting when trying to assign or post to an account that is not configured to handle P&L transactions.
  
  Cause:
  
  Account Configuration: The account in question is configured as a balance sheet account rather than a P&L account. In SAP, accounts are categorized as either balance sheet accounts or P&L accounts, and certain transactions can only be posted to the appropriate type.
  Account Type Mismatch: The transaction you are trying to perform requires a P&L account, but the specified account is set up as a balance sheet account.
  Master Data Settings: The account master data may not be set up correctly to allow for P&L postings.
  
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the account master data in