How To Fix FB654 - Direct transfer into external company codes not possible

SAP Error Message - Details

• Message type: E = Error

• Message class: FB - Batch Programs

• Message number: 654

• Message text: Direct transfer into external company codes not possible

What causes this issue?

The target company codes you selected contains external company
codes.

System Response

Warning message.
No data transfer into the external company codes is carried out.
The data transfer into the other selected target company codes is
carried out.
&ADDITIONAL_HINTS&
If you want to copy data into external company codes, you must
proceed as follows:
Write the data of the source company code to a sequential file
(entry in the field 'Name of file path').
Transport this file to your external system.
Now execute the program to receive the company code data to be
distributed. You can thus import the data from the source company
code and distribute them to company codes of the external system.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FB654 - Direct transfer into external company codes not possible ?

  The SAP error message FB654, which states "Direct transfer into external company codes not possible," typically occurs when you attempt to post a financial transaction that involves a direct transfer between company codes, and one of the company codes is marked as an external company code. This situation can arise in various scenarios, such as intercompany transactions or when dealing with different legal entities.
  Cause:
  
  External Company Code: The company code you are trying to transfer to or from is defined as an external company code in the system. External company codes are usually those that are not part of the same controlling area or are not set up for direct postings.
  Configuration Issues: The configuration settings in the SAP system may not allow for direct postings between certain company codes, especially if they belong to different controlling areas or if intercompany settings are not properly configured.
  Transaction Type: The type of transaction you are trying to execute may not support direct transfers between external company codes.
  
  Solution:
  
  Check Company Code Settings: Verify the settings of the company codes involved in the transaction. Ensure that they are correctly configured and that the necessary intercompany settings are in place.
  Use Intercompany Transactions: Instead of a direct transfer, consider using intercompany transactions. This typically involves creating a separate intercompany invoice or journal entry that reflects the transfer between the two company codes.
  Consult Configuration: If you have access to the configuration settings, check the following:
  
  Ensure that the company codes are assigned to the same controlling area if they need to be able to post directly to each other.
  Review the settings in the Financial Accounting (FI) module related to intercompany transactions.
  
  
  Use Alternative Posting Methods: If direct posting is not possible, you may need to use alternative methods such as:
  
  Posting a journal entry in each company code separately.
  Using a clearing account to facilitate the transfer.
  
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any specific guidance or patches related to this error message. SAP frequently updates its documentation and may have specific recommendations for your version of the software.
  Documentation: Review the SAP documentation related to intercompany transactions and external company codes for a deeper understanding of how to manage these types of postings.
  User Forums: Consider visiting SAP community forums or user groups where similar issues may have been discussed, and solutions shared.
  
  If the issue persists after trying the above solutions, it may be beneficial to consult with your SAP support team or a consultant who specializes in SAP Financial Accounting.