How To Fix FARR_FOUNDATION821 - Account &1 not valid; cost impairment account must be a P/L acct

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_FOUNDATION - Revenue Accounting - Foundation

• Message number: 821

• Message text: Account &1 not valid; cost impairment account must be a P/L acct

What causes this issue?

The validation for the cost impairment account failed because the
determined account is not a profit and 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_FOUNDATION821 - Account &1 not valid; cost impairment account must be a P/L acct ?

  The SAP error message FARR_FOUNDATION821 indicates that there is an issue with the configuration of the cost impairment account in the Asset Accounting (FI-AA) module. Specifically, the error states that the account specified (denoted as &1) is not valid because it must be a Profit and Loss (P/L) account.
  Cause:
  
  Account Type: The account specified in the configuration is not set up as a P/L account. In SAP, cost impairment accounts must be linked to P/L accounts to ensure that any impairments are reflected in the financial statements correctly.
  Configuration Error: There may be a misconfiguration in the Asset Accounting settings where the wrong account type is assigned for cost impairments.
  Account Not Defined: The account may not be defined in the chart of accounts or may not be active.
  
  Solution:
  To resolve this error, follow these steps:
  
  
  Check Account Configuration:
  
  Go to the transaction code OBD4 (or use the menu path: Financial Accounting > General Ledger Accounting > Master Data > G/L Account > Prepare G/L Account Creation).
  Verify that the account specified in the error message is indeed a P/L account. The account type should be set to "P/L" in the account master data.
  
  
  
  Change Account Type:
  
  If the account is not a P/L account, you will need to either change the account type to P/L or create a new P/L account that can be used for cost impairments.
  Ensure that the new or modified account is properly configured with the necessary settings (e.g., account group, field status).
  
  
  
  Update Asset Configuration:
  
  Go to the transaction code OAYZ (or use the menu path: Asset Accounting > Settings > Asset Class > Define Asset Class).
  Check the asset class configuration to ensure that the correct cost impairment account is assigned.
  
  
  
  Test the Configuration:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  OBD4: G/L Account Master Data
  OAYZ: Asset Class Configuration
  
  
  Documentation: Refer to SAP Help documentation for Asset Accounting for detailed information on account types and configuration settings.
  User Roles: Ensure that you have the necessary authorizations to make changes to account configurations and asset classes.
  
  By following these steps, you should be able to resolve the FARR_FOUNDATION821 error and ensure that your cost impairment account is correctly configured as a P/L account.