How To Fix FH224 - Direct change from balance sheet acct to cost/revenue acct not possible

SAP Error Message - Details

• Message type: E = Error

• Message class: FH - General ledger module messages

• Message number: 224

• Message text: Direct change from balance sheet acct to cost/revenue acct not possible

What causes this issue?

General ledger account &V1& is a balance sheet account.

System Response

Controlling-area-dependent data is not allowed.

How to fix this error?

If you want to change the G/L account type from <ZH>Balance Sheet
Account</> to <ZH>Primary Costs or Revenue</> (or <ZH>Secondary Costs</>
), first change the G/L account type to <ZH>Nonoperating Expense and
Income</>. After you have saved this change, you can then change the G/L
account type to <ZH>Primary Costs or Revenue</> (or <ZH>Secondary Costs
</>).

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FH224 - Direct change from balance sheet acct to cost/revenue acct not possible ?

  The SAP error message FH224 ("Direct change from balance sheet account to cost/revenue account not possible") typically occurs when there is an attempt to post a transaction that involves changing the account type from a balance sheet account to a cost or revenue account directly. This is not allowed in SAP because it violates the accounting principles that govern the flow of financial data.
  Cause:
  
  Account Type Mismatch: The error arises when a user tries to post a transaction that involves a direct change from a balance sheet account (like assets or liabilities) to a profit and loss account (like expenses or revenues).
  Transaction Type: Certain transaction types in SAP are designed to maintain the integrity of financial data and prevent direct changes that could lead to inconsistencies in financial reporting.
  Configuration Issues: There may be configuration settings in the SAP system that restrict such postings.
  
  Solution:
  
  
  Review the Transaction: Check the transaction you are trying to post. Ensure that you are not attempting to change the account type directly. If you need to move funds from a balance sheet account to a cost/revenue account, consider using an appropriate journal entry or transaction type that allows for this.
  
  
  Use Correct Posting Methods: Instead of trying to post directly, you may need to:
  
  Post a transfer from the balance sheet account to an intermediate account (if applicable).
  Then, post from the intermediate account to the cost/revenue account.
  Alternatively, use a proper transaction type that allows for the movement of funds between these account types.
  
  
  
  Consult with Finance Team: If you are unsure about the correct procedure, consult with your finance or accounting team to ensure compliance with accounting standards and internal policies.
  
  
  Check Configuration: If you believe the posting should be allowed, check the configuration settings in the SAP system. This may involve reviewing the account determination settings or consulting with an SAP FI (Financial Accounting) consultant.
  
  
  SAP Notes and Documentation: Look for any relevant SAP Notes or documentation that may provide additional insights or updates regarding this error message.
  
  
  Related Information:
  
  Account Types in SAP: Understand the different account types in SAP (balance sheet accounts vs. profit and loss accounts) and how they interact.
  Transaction Codes: Familiarize yourself with relevant transaction codes (like FB50 for general ledger postings) and their proper usage.
  SAP Community and Forums: Engage with the SAP community or forums for additional insights and solutions from other users who may have encountered similar issues.
  
  By following these steps, you should be able to resolve the FH224 error and ensure that your financial postings are compliant with SAP's accounting principles.