How To Fix FARR_FOUNDATION806 - Acct &1 invalid; recognized revenue f. linked POB acct must be a P/L acct

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_FOUNDATION - Revenue Accounting - Foundation

• Message number: 806

• Message text: Acct &1 invalid; recognized revenue f. linked POB acct must be a P/L acct

What causes this issue?

The validation for the account for recognized revenue for linked POB
(performance obligation) failed because the determined account is not a
profit/loss account.

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?

Check the account configuration under
<DS:SIMG.FI_GL_MD_FS00_DC>Edit G/L Account Centrally</>.
Maintain the correct account in the
<DS:TRAN.FARR_ACCT_DETER_CUST>BRF+ Account Determination Rules</> on
the tab <ZK>Recognized Revenue for Linked POB</>.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_FOUNDATION806 - Acct &1 invalid; recognized revenue f. linked POB acct must be a P/L acct ?

  The SAP error message FARR_FOUNDATION806 indicates that there is an issue with the account configuration in the context of revenue recognition for linked Profitability Analysis (POB) accounts. Specifically, the error states that the account specified is invalid because it must be a Profit and Loss (P/L) account for recognized revenue.
  Cause:
  
  Account Type: The account specified in the transaction is not set up as a Profit and Loss account. In SAP, revenue accounts must be classified correctly to ensure proper financial reporting.
  Configuration Issues: The account may not be configured correctly in the Financial Accounting (FI) module or may not be linked properly in the Revenue Recognition (FARR) settings.
  Master Data Issues: The account master data may be incomplete or incorrect, leading to this error when trying to recognize revenue.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the account master data in SAP (transaction code FS00) and verify that the account in question is set up as a P/L account.
  Ensure that the account is not a balance sheet account, as this would lead to the error.
  
  
  
  Review Revenue Recognition Settings:
  
  Check the configuration settings for revenue recognition in the SAP system (transaction code SPRO).
  Navigate to Financial Accounting (New) > Revenue Recognition and ensure that the linked POB accounts are correctly defined as P/L accounts.
  
  
  
  Adjust Master Data:
  
  If the account is incorrectly classified, you may need to change the account type in the master data.
  If necessary, create a new P/L account and update the relevant configurations to point to this new account.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for additional guidance on configuring accounts for revenue recognition.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  FS00: Display/Change G/L Account Master Data
  SPRO: SAP Reference IMG (Implementation Guide)
  
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  User Roles: Ensure that you have the necessary authorizations to make changes to account configurations and master data.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in Financial Accounting and Revenue Recognition.