How To Fix FARR_FOUNDATION840 - Account &1 is not valid; recognized costs account must be a P/L account

FARR_FOUNDATION840 - Overview

• Message type: E = Error

• Message class: FARR_FOUNDATION - Revenue Accounting - Foundation

• Message number: 840

• Message text: Account &1 is not valid; recognized costs account must be a P/L account

What causes this issue?

The validation for the recognized costs 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_FOUNDATION840 - Account &1 is not valid; recognized costs account must be a P/L account ?

  The SAP error message FARR_FOUNDATION840 indicates that the account specified (denoted as &1 in the message) is not valid for the operation you are trying to perform. Specifically, it states that the recognized costs account must be a Profit and Loss (P/L) account. This error typically arises in the context of Asset Accounting (FI-AA) or when dealing with financial transactions that require specific account types.
  
  Cause:
  
  Account Type Mismatch: The account you are trying to use is not set up as a P/L account in the chart of accounts. It may be a balance sheet account or another type that is not suitable for the transaction.
  
  Configuration Issues: The account may not be properly configured in the system, or it may not be assigned to the correct account group.
  Incorrect Account Assignment: The account may have been incorrectly assigned in the configuration settings for asset accounting or in the transaction you are trying to