How To Fix FS894 - Only manage balances in local curr. for G/L account & in company code &

SAP Error Message - Details

• Message type: E = Error

• Message class: FS - Messages from Tax Routines / Prenumbered Checks

• Message number: 894

• Message text: Only manage balances in local curr. for G/L account & in company code &

What causes this issue?

You have configured the G/L account to allow postings in currencies
other than the local currency.

System Response

Using a document currency that is different from the local currency may
lead to sending the wrong currency information to the Audit Register
File in the external tax system. If the currencies are always the same
there is no impact.

How to fix this error?

In transaction FS00, check the indicator "Only balances in local
currency". If you just want to turn off this message, go to the IMG
path Financial Accounting --> Financial Accounting Global Settings -->
Tax on Sales/Purchases --> Basic Settings --> Change Message Control
for Taxes.

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 FS894 - Only manage balances in local curr. for G/L account & in company code & ?

  The SAP error message FS894 indicates that there is an issue with managing balances in a General Ledger (G/L) account in a specific company code. This error typically arises when there is an attempt to post or manage balances in a currency that is not the local currency of the company code.
  Cause:
  
  Currency Mismatch: The G/L account is set up to only allow transactions in the local currency of the company code, but the transaction is being attempted in a different currency.
  Account Configuration: The G/L account may be configured to only manage balances in the local currency, which is a common setting for certain types of accounts (e.g., balance sheet accounts).
  Company Code Settings: The company code may have specific settings that restrict transactions to the local currency.
  
  Solution:
  
  Check Transaction Currency: Ensure that the transaction you are trying to post is in the local currency of the company code. If it is in a foreign currency, you may need to convert it to the local currency.
  Review G/L Account Settings: 
  
  Go to the G/L account configuration in the SAP system (Transaction Code: FS00).
  Check the settings for the account in question to confirm that it is set to allow only local currency transactions.
  
  
  Adjust Company Code Settings: If necessary, review the company code settings to see if there are restrictions on currency usage.
  Use a Different G/L Account: If the transaction must be in a foreign currency, consider using a different G/L account that allows for foreign currency transactions.
  Consult with Finance Team: If you are unsure about the correct account to use or the implications of changing settings, consult with your finance or accounting team for guidance.
  
  Related Information:
  
  Local Currency: The local currency is the currency in which the company code operates and is typically defined during the creation of the company code.
  Foreign Currency Transactions: If your organization frequently deals with foreign currency transactions, consider setting up G/L accounts that can handle multiple currencies.
  SAP Documentation: Refer to SAP Help documentation for more detailed information on G/L account settings and currency management.
  
  By following these steps, you should be able to resolve the FS894 error and successfully manage your G/L account transactions.