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

FINS_CO_ICO011 - Overview

• 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.

FINS_CO_ICO011 - Details

• 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