How To Fix FARR_FOUNDATION842 - Account &1 is not valid; accrued 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: 842

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

What causes this issue?

The validation for the accrued 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_FOUNDATION842 - Account &1 is not valid; accrued cost account must be a B/S account ?

  The SAP error message FARR_FOUNDATION842 indicates that the account specified (denoted as &1) is not valid for the operation being performed. Specifically, it states that the accrued 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 asset transactions that involve accrued costs.
  Cause:
  
  Account Type: The account specified in the configuration is not set up as a balance sheet account. In SAP, accrued cost accounts must be balance sheet accounts because they represent liabilities that need to be settled in the future.
  Configuration Issues: The account may not be properly configured in the chart of accounts or may not be assigned to the correct account type.
  Incorrect Account Assignment: The account might have been incorrectly assigned in the asset master record or in the configuration settings for asset accounting.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the transaction code OB52 to check the account type settings.
  Ensure that the account in question is configured as a balance sheet account in the chart of accounts.
  
  
  
  Review Asset Master Record:
  
  Use transaction code AS03 to display the asset master record.
  Check the settings for the accrued cost account and ensure it points to a valid balance sheet account.
  
  
  
  Adjust Configuration:
  
  If the account is not a balance sheet account, you may need to create a new account or change the existing account type in the configuration settings.
  Use transaction code OBY6 to check the account types in the chart of accounts.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the correct account to use, consult with your finance or accounting team to ensure compliance with accounting standards and practices.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  AS03: Display Asset Master Record
  OB52: Change View "Posting Periods": Overview
  OBY6: Define Account Types
  
  
  Documentation: Refer to SAP Help documentation for Asset Accounting for detailed information on account types and configurations.
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to this error message.
  
  By following these steps, you should be able to resolve the error message FARR_FOUNDATION842 and ensure that the accrued cost account is correctly set up as a balance sheet account.