How To Fix FARR_FOUNDATION811 - Account &1 is not valid; contract liability account must be a B/S acct

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_FOUNDATION - Revenue Accounting - Foundation

• Message number: 811

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

What causes this issue?

The validation for the contract liability 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</>.

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_FOUNDATION811 - Account &1 is not valid; contract liability account must be a B/S acct ?

  The SAP error message FARR_FOUNDATION811 indicates that the account specified in the transaction is not valid for the operation being performed. Specifically, it states that the contract liability account must be a balance sheet (B/S) account. This error typically arises in the context of contract accounting or asset accounting in SAP.
  Cause:
  
  Incorrect Account Type: The account specified (in this case, &1) is not set up as a balance sheet account in the SAP system. Contract liability accounts must be balance sheet accounts because they represent obligations or liabilities that the company has.
  Configuration Issues: The account may not be properly configured in the chart of accounts or may not be assigned to the correct account type.
  Data Entry Error: There may have been a mistake in entering the account number in the transaction.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the transaction code FS00 (G/L Account Master Record) and check the account settings for the account number specified in the error message.
  Ensure that the account is marked as a balance sheet account. The account type should be set to "B" (Balance Sheet) in the account master data.
  
  
  
  Correct Account Assignment:
  
  If the account is not a balance sheet account, you will need to either change the account to a valid balance sheet account or create a new balance sheet account that can be used for contract liabilities.
  
  
  
  Review Transaction Data:
  
  Double-check the transaction data where the error occurred to ensure that the correct account number is being used. If there was a typo or incorrect entry, correct it.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about which account to use or how to configure it, consult with your finance or accounting team to ensure compliance with accounting standards and practices.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to ensure that the error has been resolved.
  
  
  
  Related Information:
  
  Account Types in SAP: In SAP, accounts are categorized into different types, such as balance sheet accounts (B) and profit and loss accounts (P&L). Understanding these categories is crucial for proper financial reporting.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FS00 (G/L Account Master), OBD4 (Define Account Types), and OBY6 (Define Company Code).
  Documentation: Refer to SAP documentation or help files for more detailed information on configuring G/L accounts and understanding the implications of account types in financial transactions.
  
  By following these steps, you should be able to resolve the error and ensure that the correct account is used for contract liabilities in your SAP system.