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

SAP Error Message - Details

• 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 SAP (transaction code FS00).
  Verify the account type and ensure that it is set up as a P&L account if it is intended to be used for P&L transactions.
  If the account should be a P&L account, you may need to change its configuration.
  
  
  
  Change Account Type:
  
  If the account is incorrectly set as a balance sheet account, you may need to create a new account with the correct settings or change the existing account type (if allowed).
  Note that changing the account type may have implications for historical data and reporting, so it should be done with caution.
  
  
  
  Review Transaction:
  
  Ensure that the transaction you are trying to perform is appropriate for the account type. If you are trying to post a transaction that should go to a P&L account, make sure you are using the correct account.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the correct account configuration or the implications of changing an account type, consult with your finance or accounting team for guidance.
  
  
  
  Related Information:
  
  SAP Documentation: Refer to SAP Help documentation for detailed information on account types and configurations.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FS00 (Account Master Data), OBY6 (Chart of Accounts), and OBA7 (Account Type Configuration).
  User Authorizations: Ensure that you have the necessary authorizations to make changes to account master data.
  
  By following these steps, you should be able to resolve the AC302 error and ensure that the account is correctly configured for the intended transactions.