How To Fix FC262 - Payment terms & are not marked as holdback

SAP Error Message - Details

• Message type: E = Error

• Message class: FC - FI configuration error messages

• Message number: 262

• Message text: Payment terms & are not marked as holdback

What causes this issue?

The "holdback/retainage payment" indicator was not set during terms of
payment definition for &V1&.

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?

In the Accounting customizing menu, select <LS>Business transactions ->
Accounts receivable (or payable) -> Maintain payment terms </> and
designate &V1& as holdback/retainage payment.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FC262 - Payment terms & are not marked as holdback ?

  The SAP error message FC262 indicates that the payment terms specified in a transaction are not marked as "holdback." This typically occurs in the context of financial transactions, such as vendor invoices or customer payments, where specific payment terms are required to be set up correctly to ensure proper processing.
  Cause:
  
  Payment Terms Configuration: The payment terms defined in the system may not have been configured to allow for holdback payments. Holdback payments are often used in contracts where a portion of the payment is withheld until certain conditions are met.
  Transaction Data: The specific transaction you are trying to process may not have the correct payment terms assigned that allow for holdback.
  Master Data Issues: The vendor or customer master data may not have the appropriate payment terms set up.
  
  Solution:
  
  
  Check Payment Terms Configuration:
  
  Go to the configuration settings in SAP (Transaction code: OBB8) and review the payment terms. Ensure that the payment terms you are using are set up to allow for holdback.
  If necessary, create or modify the payment terms to include holdback options.
  
  
  
  Review Transaction Data:
  
  Check the transaction (e.g., invoice or payment) to ensure that the correct payment terms are assigned. You can do this by reviewing the document in the relevant transaction (e.g., FB60 for vendor invoices).
  If the payment terms are incorrect, update them to the appropriate terms that allow for holdback.
  
  
  
  Update Master Data:
  
  Review the vendor or customer master data (Transaction codes: XK02 for vendors, XD02 for customers) to ensure that the correct payment terms are assigned.
  If the payment terms are not set correctly, update the master data accordingly.
  
  
  
  Consult Documentation:
  
  If you are unsure about the configuration or the implications of changing payment terms, consult the SAP documentation or reach out to your SAP support team for guidance.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on configuring payment terms.
  User Roles and Authorizations: Ensure that you have the necessary authorizations to make changes to payment terms and master data.
  Testing: After making changes, perform a test transaction to ensure that the error is resolved and that the payment terms are functioning as expected.
  
  By following these steps, you should be able to resolve the FC262 error and ensure that your payment terms are correctly configured for holdback payments.