How To Fix FARR_FOUNDATION812 - Account &1 is not valid; deferred revenue account must be a B/S acct

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_FOUNDATION - Revenue Accounting - Foundation

• Message number: 812

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

What causes this issue?

The validation for the deferred revenue 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_FOUNDATION812 - Account &1 is not valid; deferred revenue account must be a B/S acct ?

  The SAP error message FARR_FOUNDATION812 indicates that the account specified in the system is not valid for the context in which it is being used. Specifically, it states that the deferred revenue account must be a balance sheet (B/S) account. This error typically arises in the context of the SAP Revenue Accounting and Reporting (RAR) module, where proper account configuration is crucial for accurate financial reporting.
  Cause:
  
  Account Type Misconfiguration: The account specified (denoted as &1 in the error message) is not set up as a balance sheet account in the SAP system. Deferred revenue accounts must be classified as balance sheet accounts because they represent liabilities until the revenue is recognized.
  Incorrect Account Assignment: The account may have been incorrectly assigned in the configuration settings for revenue recognition or in the master data of the relevant financial documents.
  Missing Account in Chart of Accounts: The account may not exist in the chart of accounts being used, or it may not be properly activated.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the transaction code FS00 to check the account settings for the specified account.
  Ensure that the account type is set to "Balance Sheet" (typically, this means the account should have a type of "Liability" for deferred revenue).
  
  
  
  Modify Account Type:
  
  If the account is not set as a balance sheet account, you will need to change its configuration. This may involve creating a new account or modifying the existing one to ensure it is classified correctly.
  
  
  
  Review Account Assignment:
  
  Check the configuration settings in the RAR module to ensure that the correct accounts are assigned for deferred revenue. This can typically be found in the customizing settings under Financial Accounting > Revenue Accounting and Reporting.
  
  
  
  Consult with Financial Team:
  
  If you are unsure about the correct account to use, consult with your finance or accounting team to ensure compliance with accounting standards and practices.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes: 
  
  FS00: Create/Change G/L Account
  OB52: Open and Close Posting Periods
  OBD2: Define Account Types
  
  
  Documentation: Refer to SAP Help documentation for Revenue Accounting and Reporting for detailed guidelines on account configuration.
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to this error message.
  
  By following these steps, you should be able to resolve the error and ensure that the deferred revenue account is correctly configured in your SAP system.