How To Fix FARR_FOUNDATION816 - Account &1 is not valid; receivable adjustment acct must be a B/S acct

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_FOUNDATION - Revenue Accounting - Foundation

• Message number: 816

• Message text: Account &1 is not valid; receivable adjustment acct 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</>.

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_FOUNDATION816 - Account &1 is not valid; receivable adjustment acct must be a B/S acct ?

  The SAP error message FARR_FOUNDATION816 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 configuration or transaction is not set up as a balance sheet account. In SAP, accounts are categorized as either income statement accounts or balance sheet accounts, and certain transactions require specific types.
  Configuration Issues: The account may not be properly configured in the system, or it may not be assigned to the correct account group.
  Transaction Type: The transaction being processed may require a different type of account than what has been 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 master data under the "Control Data" tab, where the account type should be set to "Balance Sheet Account."
  
  
  
  Adjust Account Settings:
  
  If the account is not a balance sheet account, you may need to create a new account or modify the existing one to ensure it meets the requirements for the receivable adjustment account.
  If you need to create a new account, ensure it is assigned to the correct account group and has the appropriate settings.
  
  
  
  Review Transaction Settings:
  
  Check the transaction or process that is generating the error. Ensure that the correct accounts are being used for the specific type of transaction.
  If necessary, consult with your finance team or SAP functional consultant to ensure that the correct accounts are being utilized.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to ensure that the error has been resolved.
  
  
  
  Related Information:
  
  Account Types in SAP: Understanding the difference between balance sheet accounts and income statement accounts is crucial. Balance sheet accounts include assets, liabilities, and equity, while income statement accounts include revenues and expenses.
  SAP Documentation: Refer to SAP Help documentation for detailed information on account configuration and transaction processing.
  Consulting SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on account configuration.
  
  If the issue persists after following these steps, it may be beneficial to engage with your SAP support team or a consultant who specializes in SAP Financial Accounting (FI) for further assistance.