How To Fix FARR_FOUNDATION807 - Account &1 is not valid; receivable adjustment account must be a B/S acct

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_FOUNDATION - Revenue Accounting - Foundation

• Message number: 807

• Message text: Account &1 is not valid; receivable adjustment account must be a B/S acct

What causes this issue?

The validation for the receivable adjustment account failed because the
determined account is not a balance sheet 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>Receivable Adjustment</>.

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_FOUNDATION807 - Account &1 is not valid; receivable adjustment account must be a B/S acct ?

  The SAP error message FARR_FOUNDATION807 indicates that the account specified in the transaction is not valid for the operation being performed. Specifically, it states that the receivable adjustment account must be a balance sheet (B/S) account. This error typically arises in the context of financial accounting and asset accounting within SAP.
  Cause:
  
  Incorrect Account Type: The account specified in the transaction is not set up as a balance sheet account. In SAP, receivable adjustment accounts must be balance sheet accounts because they are used to adjust receivables, which are assets.
  Configuration Issues: The account may not be properly configured in the system, or it may not be assigned to the correct account type in the chart of accounts.
  Transaction Type: The transaction being processed may require a specific type of account that is not being met by the account provided.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the SAP transaction code FS00 (G/L Account Master Record) and check the account number specified in the error message.
  Ensure that the account is set up as a balance sheet account. This can be verified in the account type field (it should be set to "B" for balance sheet accounts).
  
  
  
  Modify Account Type:
  
  If the account is not a balance sheet account, you may need to create a new account or modify the existing account to ensure it is classified correctly.
  If you need to create a new account, ensure that it is set up with the correct account type and is assigned to the appropriate cost center or profit center as needed.
  
  
  
  Review Transaction Settings:
  
  Check the settings of the transaction you are trying to execute. Ensure that it is configured to use the correct receivable adjustment account.
  If necessary, consult with your financial team or SAP consultant to ensure that the transaction is set up correctly.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources related to the specific transaction you are working with to ensure compliance with the required account types.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on account configuration.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  FS00: G/L Account Master Record
  OBD4: Define Account Types
  OBY6: Define Company Code Global Parameters
  
  
  User Roles: Ensure that you have the necessary permissions to view and modify account settings in SAP.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a financial consultant who specializes in SAP configurations.