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

SAP Error Message - Details

• 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 data under the "Control Data" tab, where you should see the account type set to "P&L".
  
  
  
  Modify Account Type:
  
  If the account is incorrectly set as a balance sheet account, you may need to change it to a P&L account. This typically requires the account to be deleted and recreated, as changing the account type directly is not allowed in SAP.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about making changes to the account configuration, consult with your finance or accounting team to ensure that the account setup aligns with your organization's financial reporting requirements.
  
  
  
  Check Transaction Type:
  
  Ensure that the transaction you are trying to post is appropriate for the account type. If it is a P&L transaction, make sure you are using the correct account.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  FS00: G/L Account Master Record
  OB52: Open and Close Posting Periods
  FBL3N: G/L Account Line Item Display
  
  
  
  Documentation: Refer to SAP Help documentation for detailed information on G/L account configuration and the implications of account types.
  
  
  Testing: After making changes, perform a test transaction to ensure that the error is resolved.
  
  
  By following these steps, you should be able to resolve the AC306 error and ensure that the account is correctly defined for P&L postings.