How To Fix FARR_FOUNDATION818 - Account &1 is not valid; early termination acct must be a P/L account

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_FOUNDATION - Revenue Accounting - Foundation

• Message number: 818

• Message text: Account &1 is not valid; early termination acct must be a P/L account

What causes this issue?

Validation of the account for early termination expense of revenue
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</>.

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_FOUNDATION818 - Account &1 is not valid; early termination acct must be a P/L account ?

  The SAP error message FARR_FOUNDATION818 indicates that the account specified in the transaction is not valid for the operation being performed. Specifically, it states that the early termination account must be a Profit and Loss (P/L) account. This error typically arises in the context of Asset Accounting (FI-AA) when dealing with asset transactions, particularly when terminating an asset early.
  Cause:
  
  Account Type: The account specified (denoted as &1 in the error message) is not a P/L account. In SAP, early termination of an asset should be linked to a P/L account to ensure that the financial implications of the termination are correctly reflected in the financial statements.
  Configuration Issues: The account may not be properly configured in the system to be used for early termination transactions.
  Incorrect Account Assignment: The account assigned for the early termination may have been incorrectly set up in the asset master data or in the configuration settings.
  
  Solution:
  
  
  Check Account Type: Verify that the account specified in the error message is indeed a P/L account. You can do this by checking the account in the General Ledger (G/L) account master data.
  
  Use transaction code FS00 to view the account details.
  Ensure that the account is set up as a P/L account and not a balance sheet account.
  
  
  
  Update Asset Master Data: If the account is incorrect, you may need to update the asset master data to point to a valid P/L account for early termination.
  
  Use transaction code AS02 to change the asset master data and specify the correct early termination account.
  
  
  
  Configuration Review: If the account is correct but the error persists, review the configuration settings in Asset Accounting.
  
  Check the configuration for the asset class to ensure that the early termination account is correctly assigned.
  Use transaction code OAOA to review the settings for the asset class.
  
  
  
  Consult Documentation: If you are unsure about the correct account to use, consult your organization's financial policies or SAP documentation for guidance on asset termination processes.
  
  
  Testing: After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  Related Information:
  
  Transaction Codes:
  
  FS00: G/L Account Master Data
  AS02: Change Asset Master Data
  OAOA: Configure Asset Classes
  
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  User Roles: Ensure that you have the necessary authorizations to make changes to account settings and asset master data.
  
  By following these steps, you should be able to resolve the error and successfully process the early termination of the asset.