How To Fix FINS_REV_REC056 - Account &1 is not flagged as a balance sheet account in Chrt/Accts &2

SAP Error Message - Details

• Message type: E = Error

• Message class: FINS_REV_REC - Event Based revenue recognition

• Message number: 056

• Message text: Account &1 is not flagged as a balance sheet account in Chrt/Accts &2

What causes this issue?

Checking the quoted account and chart of accounts indicates that the
account is not flagged properly as a balance sheet account.

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?

You may
check whether a suitable account is maintained by the customizing of
event based revenue recognition<(>,<)>
check the settings of the quoted account.
or contact your system administrator

Procedure for System Administrators

Technical information: The SAP table SKA1 (G/L account master (chart of
accounts)) is checked for displaying the correct indicator "account is a
balance sheet account".

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FINS_REV_REC056 - Account &1 is not flagged as a balance sheet account in Chrt/Accts &2 ?

  The SAP error message FINS_REV_REC056 indicates that the account specified in the error message is not flagged as a balance sheet account in the chart of accounts. This error typically arises in the context of revenue recognition and related financial processes, where certain accounts must be designated as balance sheet accounts to properly handle transactions.
  Cause:
  The primary cause of this error is that the account you are trying to use (Account &1) is not configured correctly in the chart of accounts (Chart of Accounts &2). Specifically, it is not marked as a balance sheet account, which is necessary for the system to process certain financial transactions, especially those related to revenue recognition.
  Solution:
  To resolve this error, you need to ensure that the account in question is correctly flagged as a balance sheet account. Here are the steps to do this:
  
  
  Access the Chart of Accounts:
  
  Go to the SAP transaction code OBD4 (or use the appropriate transaction for your version of SAP) to access the chart of accounts.
  
  
  
  Find the Account:
  
  Locate the account number (Account &1) that is causing the error. You can search for it using the account number or description.
  
  
  
  Edit Account Settings:
  
  Once you have found the account, check its settings. You need to ensure that the account is marked as a balance sheet account. This is typically done by checking the "Account Type" field.
  The account type should be set to either "Asset" or "Liability" for it to be considered a balance sheet account.
  
  
  
  Save Changes:
  
  After making the necessary changes, save the account settings.
  
  
  
  Test the Transaction Again:
  
  After updating the account settings, try to execute the transaction that previously resulted in the error to see if the issue has been resolved.
  
  
  
  Related Information:
  
  
  Account Types in SAP:
  
  In SAP, accounts are categorized into different types, such as balance sheet accounts (assets and liabilities) and income statement accounts (revenues and expenses). It is crucial to configure these correctly for accurate financial reporting.
  
  
  
  Revenue Recognition:
  
  The error is often encountered in the context of revenue recognition processes, where specific accounts must be used to defer or recognize revenue correctly.
  
  
  
  Consult Documentation:
  
  If you are unsure about the changes or the implications of marking an account as a balance sheet account, consult your organization's financial documentation or reach out to your SAP financial consultant.
  
  
  
  Authorization:
  
  Ensure that you have the necessary authorization to make changes to account settings in the SAP system.
  
  
  
  By following these steps, you should be able to resolve the FINS_REV_REC056 error and ensure that your financial transactions are processed correctly.