How To Fix FH063 - Reconciliation account cannot be a tax account

SAP Error Message - Details

• Message type: E = Error

• Message class: FH - General ledger module messages

• Message number: 063

• Message text: Reconciliation account cannot be a tax account

Self-Explanatory Message

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• What is the cause and solution for SAP error message FH063 - Reconciliation account cannot be a tax account ?

  The SAP error message FH063, which states "Reconciliation account cannot be a tax account," typically occurs when there is an attempt to assign a tax account as a reconciliation account in the SAP system. This error is common in the context of financial accounting, particularly when dealing with accounts payable, accounts receivable, or general ledger accounts.
  Cause:
  
  Account Type Misconfiguration: The account you are trying to set as a reconciliation account is defined as a tax account in the system. In SAP, reconciliation accounts are used to aggregate balances from sub-ledgers (like accounts receivable or accounts payable) and should not be linked to tax accounts.
  Incorrect Account Assignment: The account being used in a transaction or configuration is not set up correctly in the chart of accounts or is incorrectly classified.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the account master data (transaction code FS00) and check the account type. Ensure that the account you are trying to use as a reconciliation account is not marked as a tax account.
  If it is a tax account, you will need to create a new account that is not classified as a tax account to use as a reconciliation account.
  
  
  
  Create a New Reconciliation Account:
  
  If necessary, create a new general ledger account that is specifically designated as a reconciliation account and ensure it is not marked as a tax account.
  Make sure to set the appropriate account type and settings in the account master data.
  
  
  
  Review Configuration Settings:
  
  Check the configuration settings in the Financial Accounting (FI) module to ensure that the reconciliation accounts are set up correctly. This can be done through the configuration path in SPRO (SAP Project Reference Object).
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for specific guidelines on setting up reconciliation accounts and tax accounts to ensure compliance with best practices.
  
  
  
  Related Information:
  
  Account Types: In SAP, accounts are classified into various types (e.g., asset, liability, income, expense, tax). Understanding these classifications is crucial for proper account setup.
  Reconciliation Accounts: These accounts are used to consolidate balances from sub-ledgers. For example, an accounts receivable reconciliation account aggregates all customer transactions.
  Tax Accounts: These accounts are specifically used for tax-related transactions and should not be used as reconciliation accounts.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a financial consultant who specializes in SAP FI configurations.