How To Fix FARR_FOUNDATION841 - Account &1 is not valid; deferred cost account must be a B/S account

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_FOUNDATION - Revenue Accounting - Foundation

• Message number: 841

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

What causes this issue?

The validation for the deferred cost 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_FOUNDATION841 - Account &1 is not valid; deferred cost account must be a B/S account ?

  The SAP error message FARR_FOUNDATION841 indicates that the account specified in the transaction is not valid for the operation being performed. Specifically, it states that the deferred cost account must be a balance sheet (B/S) account. This error typically arises in the context of Asset Accounting (FI-AA) when dealing with deferred costs.
  Cause:
  
  Account Type: The account specified (in this case, &1) is not set up as a balance sheet account. Deferred costs should be recorded in accounts that are classified as balance sheet accounts, as they represent future economic benefits.
  Configuration Issues: The account may not be properly configured in the chart of accounts or may not have the correct account type assigned.
  Incorrect Account Assignment: The account may have been incorrectly assigned in the configuration settings for deferred costs.
  
  Solution:
  
  
  Check Account Type:
  
  Go to the SAP transaction code FS00 (G/L Account Master Record) and check the account type of the specified account (&1).
  Ensure that the account is set up as a balance sheet account (typically, this means the account should have a type of "B" for balance sheet).
  
  
  
  Modify Account Configuration:
  
  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 is classified correctly.
  Ensure that the account is configured to allow for deferred costs.
  
  
  
  Review Configuration Settings:
  
  Check the configuration settings for Asset Accounting (transaction code SPRO -> Financial Accounting -> Asset Accounting -> Integration with General Ledger Accounting) to ensure that the correct accounts are assigned for deferred costs.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific guidelines on setting up accounts for deferred costs.
  
  
  
  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 Record
  SPRO: Customizing Implementation Guide
  
  
  Account Types:
  
  Balance Sheet Accounts: Accounts that represent assets, liabilities, and equity.
  Income Statement Accounts: Accounts that represent revenues and expenses.
  
  
  Deferred Costs: These are costs that have been incurred but not yet recognized as expenses in the financial statements. They are typically recorded as assets until they are amortized over time.
  
  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 for further assistance.