How To Fix FARR_FOUNDATION844 - 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: 844

• 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</>.
Maintain the correct account in the
<DS:TRAN.FARR_ACCT_DETER_CUST>BRF+ Account Determination Rules</> on
the tab <ZK>Deferred Cost</>.

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_FOUNDATION844 - Account &1 is not valid; deferred cost account must be a B/S account ?

  The SAP error message FARR_FOUNDATION844 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 configuring or processing deferred costs.
  Cause:
  
  Account Type: The account specified (denoted as &1 in the error message) is not set up as a balance sheet account. Deferred costs must be recorded in accounts that are classified as balance sheet accounts because 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 Configuration:
  
  Go to the transaction code FS00 to check the account settings for the account in question.
  Ensure that the account is set up as a balance sheet account. The account type should be "B" (Balance Sheet) in the account master data.
  
  
  
  Modify Account Type:
  
  If the account is not a balance sheet account, you may need to create a new account or modify the existing account to ensure it is classified correctly.
  If you need to create a new account, ensure it is set up with the appropriate settings for deferred costs.
  
  
  
  Review Configuration Settings:
  
  Check the configuration settings for deferred costs in the Asset Accounting module. This can typically be done through the transaction code SPRO (SAP Reference IMG).
  Navigate to Financial Accounting (New) > Asset Accounting > Integration > Define Deferred Cost Accounts and ensure that the correct accounts are assigned.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for further guidance on setting up deferred cost accounts and the requirements for balance sheet accounts.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  FS00: Create/Change G/L Account Master Data
  SPRO: SAP Project Reference Object for configuration
  
  
  Account Types:
  
  A: Asset
  L: Liability
  E: Expense
  R: Revenue
  B: Balance Sheet
  
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or solutions related to this error message.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant specializing in Asset Accounting for further assistance.