How To Fix FH107 - Reconcil. accounts for contract A/P A/R only allow bal. in local currency

SAP Error Message - Details

• Message type: E = Error

• Message class: FH - General ledger module messages

• Message number: 107

• Message text: Reconcil. accounts for contract A/P A/R only allow bal. in local currency

Self-Explanatory Message

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• What is the cause and solution for SAP error message FH107 - Reconcil. accounts for contract A/P A/R only allow bal. in local currency ?

  The SAP error message FH107 indicates that there is an issue with the reconciliation accounts for Accounts Payable (A/P) and Accounts Receivable (A/R) in relation to a specific contract. The message states that these accounts only allow balances in the local currency. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  
  Currency Mismatch: The error typically arises when there is an attempt to post a transaction in a currency that is not the local currency defined for the reconciliation account. This can happen if the contract or transaction is set up in a foreign currency while the reconciliation account is configured to only accept local currency transactions.
  
  
  Configuration Settings: The reconciliation accounts for A/P and A/R may be configured to only allow postings in the local currency. This is often a setting in the financial accounting configuration.
  
  
  Contract Settings: The specific contract may have been set up with a currency that does not match the local currency of the reconciliation account.
  
  
  Solutions:
  
  
  Check Currency Settings:
  
  Verify the currency settings for the contract in question. Ensure that the currency used in the contract matches the local currency of the reconciliation account.
  If necessary, change the currency of the contract to match the local currency.
  
  
  
  Review Reconciliation Account Configuration:
  
  Go to the configuration settings for the reconciliation accounts in the SAP system. Check if the account is set to allow only local currency postings.
  If the business process requires foreign currency transactions, consider adjusting the configuration to allow for multiple currencies.
  
  
  
  Post in Local Currency:
  
  If the transaction must be posted in local currency, ensure that the amounts are converted to the local currency before posting.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the implications of changing currency settings or reconciliation account configurations, consult with your finance or accounting team to ensure compliance with financial policies.
  
  
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes such as OBY6 (for defining company code settings) or OBD2 (for defining reconciliation accounts) to check and modify settings.
  Documentation: Refer to SAP documentation or help files for detailed instructions on managing currencies and reconciliation accounts.
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  
  By addressing the currency mismatch and ensuring that the reconciliation accounts are configured correctly, you should be able to resolve the FH107 error message.