How To Fix FCO_SFIN078 - Profile &2: COGS account &1 has no cost element category '01'

SAP Error Message - Details

• Message type: E = Error

• Message class: FCO_SFIN - FI-CO Simplified Financials

• Message number: 078

• Message text: Profile &2: COGS account &1 has no cost element category '01'

What causes this issue?

COGS accounts used for splitting must be assigned to cost element
category '01' (Primary cost/cost-reducing revenues). The COGS account
&V1& is not assigned to cost element category '01'. Saving not possible.

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?

Delete the entry with COGS account &V1& for cost splitting profile &V2&.
Then create a new relevant entry for a COGS account assigned to cost
element category '01'.

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 FCO_SFIN078 - Profile &2: COGS account &1 has no cost element category '01' ?

  The SAP error message FCO_SFIN078 indicates that there is an issue with the configuration of the Cost of Goods Sold (COGS) account in relation to the cost element category. Specifically, the error states that the COGS account specified does not have the required cost element category '01' (which is typically used for primary cost elements).
  Cause:
  
  Missing Cost Element Category: The COGS account you are trying to use is not configured with the cost element category '01'. This means that the account is not set up to handle primary costs, which are necessary for COGS transactions.
  Incorrect Account Assignment: The account may be incorrectly assigned in the configuration settings, leading to this error when trying to post transactions related to COGS.
  Configuration Issues: There may be issues in the configuration of the controlling area or the chart of accounts that prevent the account from being recognized correctly.
  
  Solution:
  
  
  Check Cost Element Configuration:
  
  Go to the transaction code KA03 (Display Cost Element) or KA02 (Change Cost Element).
  Enter the COGS account number and check if it is assigned to the cost element category '01'.
  If it is not, you will need to create or modify the cost element to ensure it is categorized correctly.
  
  
  
  Create/Modify Cost Element:
  
  If the cost element does not exist, you can create it using transaction code KA01 (Create Cost Element).
  Ensure that you select the correct cost element category ('01' for primary costs) during the creation process.
  
  
  
  Review Account Assignment:
  
  Check the account assignment in the relevant configuration settings (e.g., in the controlling area settings) to ensure that the COGS account is correctly linked to the appropriate cost element.
  
  
  
  Consult Documentation: If you are unsure about the configuration, refer to SAP documentation or consult with your SAP FI/CO consultant for guidance on setting up cost elements and accounts correctly.
  
  
  Related Information:
  
  Cost Element Categories: In SAP, cost elements are categorized to determine how costs are treated in financial accounting and controlling. Category '01' is specifically for primary cost elements, which are directly linked to financial transactions.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as KA01, KA02, KA03, and OBY6 (for account assignments) to navigate through the configuration settings.
  SAP Notes: Check SAP Notes for any specific patches or updates related to this error message, as there may be known issues or fixes provided by SAP.
  
  By following these steps, you should be able to resolve the error message FCO_SFIN078 and ensure that your COGS account is properly configured for transactions.