How To Fix FINOC036 - No extension ledger with the correct type exists. Cannot simulate.

SAP Error Message - Details

• Message type: E = Error

• Message class: FINOC - Organizational Changes: Backend Messages

• Message number: 036

• Message text: No extension ledger with the correct type exists. Cannot simulate.

What causes this issue?

The organizational change can?t be simulated because no extension ledger
exists, with <LS>Extension Ledger Type</> ?Line items with technical
numbers / deletion possible?.
When you simulate an organizational change, transfer postings are
written to an extension ledger with this type and the simulation can be
run without disrupting your statutory reporting and accounting
processes.

System Response

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

How to fix this error?

In the <LS>Define Extension Ledger</> configuration step, define an
extension ledger with <LS>Extension Ledger Type</> ?Line items with
technical numbers / deletion possible?, and assign it to a standard
ledger
For organizational changes, SAP recommends that you set up an extension
ledger and assign it to the leading ledger.
For more information about organizational changes, search for SAP
S/4HANA Cloud on the
<DS:URLA.http://help.sap.com/>SAP Help Portal</>. Then, in the
<LS>Product Assistance</>, under <LS>Finance</>, search for <LS>Org
anizational Changes</>.

In the
<DS:SIMG.FINSVC_LEDGER>Define Settings for Ledgers and Currency Types
</> Customizing activity, define an extension ledger with <LS>Extension
Ledger Type</> ?Line items with technical numbers / deletion possible?,
and assign it to a standard ledger
For organizational changes, SAP recommends that you set up an extension
ledger and assign it to the leading ledger.
For more information about organizational changes, search for SAP
S/4HANA on the
<DS:URLA.http://help.sap.com/>SAP Help Portal</>. Then, in the
<LS>Product Assistance</>, under <LS>Finance</>, search for <LS>Org
anizational Changes</>.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FINOC036 - No extension ledger with the correct type exists. Cannot simulate. ?

  The SAP error message FINOC036 indicates that there is no extension ledger available with the required type for the operation you are trying to perform. This error typically occurs in the context of financial accounting, particularly when dealing with parallel accounting or extension ledgers in SAP S/4HANA or SAP ERP systems.
  
  Cause:
  
  Missing Extension Ledger: The primary cause of this error is that the system cannot find an extension ledger that matches the type required for the transaction or simulation you are attempting.
  
  Configuration Issues: There may be configuration issues in the Financial Accounting (FI) module, particularly in the settings for ledgers and accounting principles.
  Incorrect Ledger Type: The ledger type specified in the transaction may not correspond to any existing extension ledger in the system.
  Data Inconsistencies: There may be inconsistencies in the data or settings related to the ledgers.
  
  
  Solution:
  
  
  Check Ledger Configuration:
  
  Go to the configuration settings in SAP (Transaction Code: SPRO).
  Navigate to Financial Accounting