How To Fix FINS_CO_ICO011 - Cost element type &1 is not allowed as ICO margin account

SAP Error Message - Details

• Message type: E = Error

• Message class: FINS_CO_ICO - Intercompany processes

• Message number: 011

• Message text: Cost element type &1 is not allowed as ICO margin account

What causes this issue?

The account cannot be used to post an intercompany margin.

System Response

When you try to post an intercompany margin with this account, the
system will issue an error.

How to fix this error?

Choose a different account. The account has to be of type 'Primary Costs
or Revenue' or 'Secondary costs' with one of these cost element
categories:
01 Primary costs/cost-reducing revenues
03 Accrual/deferral per surcharge
04 Accrual/deferral per debit = actual
21 Internal settlement
22 External settlement
41 Overhead Rates
42 Assessment

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 FINS_CO_ICO011 - Cost element type &1 is not allowed as ICO margin account ?

  The SAP error message FINS_CO_ICO011 indicates that a specific cost element type is not permitted to be used as an Intercompany (ICO) margin account. This error typically arises in the context of intercompany transactions where margin accounts are involved, particularly in the context of profit and loss accounting.
  Cause:
  The error is caused by the configuration settings in the SAP system where the cost element type you are trying to use for the intercompany margin account is not allowed. This could be due to:
  
  Cost Element Configuration: The cost element type you are using is not set up to be used as a margin account in the intercompany process.
  Intercompany Settings: The intercompany settings in the controlling area or company code may not allow the specified cost element type for margin accounting.
  Incorrect Assignment: The cost element may not be correctly assigned to the relevant account group or may not meet the criteria defined for margin accounts.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Cost Element Configuration:
  
  Go to the transaction code KA02 (Change Cost Element) and check the configuration of the cost element in question.
  Ensure that the cost element type is appropriate for use as a margin account.
  
  
  
  Review Intercompany Settings:
  
  Check the intercompany settings in the configuration (transaction code SPRO).
  Navigate to Controlling > Profit Center Accounting > Intercompany Profit and Loss and verify the settings related to margin accounts.
  
  
  
  Adjust Cost Element Type:
  
  If the cost element type is not allowed, you may need to create a new cost element with the correct type that is permitted for intercompany margin accounting.
  Use transaction code KA01 (Create Cost Element) to create a new cost element if necessary.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific guidelines on configuring intercompany margin accounts.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Cost Element Types: Familiarize yourself with the different types of cost elements in SAP (primary, secondary, etc.) and their allowed uses.
  Intercompany Transactions: Understand the process of intercompany accounting and how margin accounts are utilized in this context.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  
  If the issue persists after following these steps, it may be beneficial to engage with your SAP support team or consult with an SAP expert for further assistance.