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

FCO_SFIN078 - Overview

• 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.

FCO_SFIN078 - Details

• 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