How To Fix AC306 - Account &3-&1 not defined as P&L account

AC306 - Overview

• Message type: E = Error

• Message class: AC - Error messages from Asset Customizing

• Message number: 306

• Message text: Account &3-&1 not defined as P&L account

What causes this issue?

Account &V1& is not defined as a retained earnings account (for the
profit and loss statement).
This is incorrect in 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 AC306 - Account &3-&1 not defined as P&L account ?

  The SAP error message AC306 indicates that the account specified (in this case, account &3 in company code &1) is not defined as a Profit and Loss (P&L) account. This error typically arises when trying to post a transaction that requires a P&L account, but the account in question is not set up correctly in the system.
  
  Cause:
  
  Account Configuration: The account is not configured as a P&L account in the chart of accounts.
  Account Type: The account type may be set incorrectly (e.g., it might be set as a balance sheet account instead of a P&L account).
  Posting Type: The transaction being posted may require a P&L account, but the specified account does not meet this requirement.
  
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the transaction code FS00 (G/L Account Master Record) to check the configuration of the account.
  Ensure that the account is set up as a P&L account. This can be verified in the account's master