How To Fix FKK_FACT042 - Doc. &1 cannot be canceled since receivables are already sold

SAP Error Message - Details

• Message type: E = Error

• Message class: FKK_FACT - FI-CA: Factoring

• Message number: 042

• Message text: Doc. &1 cannot be canceled since receivables are already sold

What causes this issue?

Document &V1& results from the sale of receivables to a factor. The
factor has accepted the receivable, the response of the factor has been
processed. A reversal of this sales document would not require
communication to the factor to inform him that the receivables that have
already been sold should now however not be sold.
However, the follow-on postings can already be executed by the
notification of payments or clearings.
Therefore the sales document &V1& cannot be reversed.

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?

If you require this scenario, post a document with offsetting items
manually.

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 FKK_FACT042 - Doc. &1 cannot be canceled since receivables are already sold ?

  The SAP error message FKK_FACT042 indicates that a document (in this case, a receivable) cannot be canceled because it has already been sold. This typically occurs in the context of accounts receivable and factoring processes, where receivables are sold to a third party (like a financial institution) for immediate cash.
  Cause:
  
  Receivable Sold: The primary reason for this error is that the receivable associated with the document has already been sold to a factoring company or another financial institution. Once a receivable is sold, it cannot be canceled in the original system because it is no longer considered an asset of the company.
  Document Status: The document may have a status that prevents cancellation, such as being in a closed state or having been processed in a way that locks it for further changes.
  
  Solution:
  
  Check Document Status: Verify the status of the document in question. If it has been sold, you will need to handle it according to the agreements with the factoring company.
  Contact Financial Institution: If you need to reverse or adjust the transaction, you may need to contact the financial institution that purchased the receivable. They may have specific procedures for handling such cases.
  Adjustments: If you need to make adjustments, consider creating a new document that reflects the necessary changes rather than trying to cancel the original document.
  Consult Documentation: Review the SAP documentation or consult with your SAP support team for specific procedures related to factoring and receivables management.
  
  Related Information:
  
  Factoring Process: Understand the factoring process and how it affects receivables. This includes knowing the terms of the sale and any obligations to the factoring company.
  SAP Configuration: Ensure that your SAP system is configured correctly for handling factoring transactions. This may involve settings in the Financial Accounting (FI) module or the Contract Accounts Receivable and Payable (FI-CA) module.
  User Roles and Permissions: Check if your user role has the necessary permissions to perform cancellations or adjustments on documents.
  
  If the issue persists or if you need further assistance, it may be beneficial to engage with your SAP support team or a consultant who specializes in SAP financial processes.