How To Fix FH018 - Reconciliation account only allowed for balance sheet account

SAP Error Message - Details

• Message type: E = Error

• Message class: FH - General ledger module messages

• Message number: 018

• Message text: Reconciliation account only allowed for balance sheet account

Self-Explanatory Message

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• What is the cause and solution for SAP error message FH018 - Reconciliation account only allowed for balance sheet account ?

  The SAP error message FH018, which states "Reconciliation account only allowed for balance sheet account," typically occurs when you attempt to post a transaction to a reconciliation account that is not classified as a balance sheet account. This error is common in the context of financial accounting (FI) and can arise in various scenarios, such as when dealing with customer or vendor accounts.
  Cause:
  
  
  Account Type Misconfiguration: The account you are trying to use as a reconciliation account is not set up as a balance sheet account in the SAP system. Reconciliation accounts must always be balance sheet accounts because they are used to aggregate the balances of sub-ledger accounts (like customer or vendor accounts).
  
  
  Posting to Incorrect Account: You may be trying to post a transaction to a reconciliation account that is not intended for that purpose, such as an income statement account.
  
  
  Account Group Settings: The account group associated with the reconciliation account may not be configured correctly to allow for reconciliation postings.
  
  
  Solution:
  
  
  Check Account Type: Verify that the account you are trying to post to is indeed a balance sheet account. You can do this by checking the account settings in the SAP system:
  
  Go to transaction code FS00 (G/L Account Master Record).
  Enter the account number and check the account type. It should be set as a balance sheet account (typically, this means the account type should be "S" for balance sheet).
  
  
  
  Correct Account Configuration: If the account is not set up correctly, you may need to change its configuration:
  
  If you have the necessary authorizations, you can change the account type to a balance sheet account.
  If you do not have the necessary permissions, contact your SAP administrator or finance team to make the necessary changes.
  
  
  
  Review Posting Logic: Ensure that the transaction you are trying to post is appropriate for the reconciliation account. If you are trying to post to a sub-ledger account, ensure that you are using the correct reconciliation account.
  
  
  Account Group Settings: Check the account group settings to ensure that the reconciliation account is properly configured to allow postings. You can do this by going to transaction code OBD4 (Account Group for G/L Accounts) and reviewing the settings.
  
  
  Related Information:
  
  
  Reconciliation Accounts: In SAP, reconciliation accounts are special G/L accounts that aggregate the balances of sub-ledger accounts. For example, a customer reconciliation account aggregates all customer balances.
  
  
  Sub-ledger Accounts: These are accounts that provide detailed information about specific transactions, such as accounts receivable (customers) and accounts payable (vendors).
  
  
  Transaction Codes:
  
  FS00: G/L Account Master Record
  OBD4: Account Group for G/L Accounts
  FB50: General Ledger Account Document Entry (for posting)
  
  
  
  SAP Documentation: For more detailed information, refer to the SAP Help Portal or your organization's SAP documentation.
  
  
  By following these steps, you should be able to resolve the FH018 error and ensure that your reconciliation accounts are set up correctly for financial postings.