How To Fix FH894 - Statistical cost element &1/&2 defined as profit account (C/A &4)

SAP Error Message - Details

• Message type: E = Error

• Message class: FH - General ledger module messages

• Message number: 894

• Message text: Statistical cost element &1/&2 defined as profit account (C/A &4)

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FH894 - Statistical cost element &1/&2 defined as profit account (C/A &4) ?

  The SAP error message FH894 indicates that a statistical cost element is defined as a profit account, which is not allowed in the system. This error typically arises when you attempt to post a transaction that involves a statistical cost element that has been incorrectly configured.
  Cause:
  
  Configuration Issue: The statistical cost element is set up in a way that it is linked to a profit account, which is not permissible. Statistical cost elements are meant for tracking costs without affecting financial accounting directly.
  Incorrect Posting: The transaction you are trying to post may be using a statistical cost element in a context where a profit account is expected.
  
  Solution:
  
  
  Check Cost Element Configuration:
  
  Go to the transaction code KA03 (Display Cost Element) or KA02 (Change Cost Element).
  Enter the cost element number (the one indicated in the error message) and check its configuration.
  Ensure that the cost element is correctly defined as a statistical cost element and not linked to a profit account.
  
  
  
  Adjust Posting Logic:
  
  Review the transaction or posting logic that is causing this error. Ensure that you are not trying to post to a statistical cost element in a way that would require it to behave like a profit account.
  If necessary, change the posting to use a different cost element that is appropriate for the transaction.
  
  
  
  Consult with SAP Support or Configuration Team:
  
  If you are unsure about the configuration or how to resolve the issue, consult with your SAP support team or a consultant who specializes in SAP FI/CO (Financial Accounting/Controlling).
  
  
  
  Related Information:
  
  Statistical Cost Elements: These are used for internal reporting and do not affect the financial statements directly. They are typically used for tracking purposes.
  Profit Accounts: These accounts are used in financial accounting to record income and expenses that affect the profit and loss statement.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as KA01 (Create Cost Element), KA03 (Display Cost Element), and KA02 (Change Cost Element) for managing cost elements in SAP.
  
  By following these steps, you should be able to resolve the FH894 error and ensure that your cost elements are configured correctly for your financial transactions.