How To Fix FSBP_FISCAL_YEAR026 - Legal retained earnings cannot be negative (fiscal year &1)

SAP Error Message - Details

• Message type: E = Error

• Message class: FSBP_FISCAL_YEAR - Fiscal Year Information

• Message number: 026

• Message text: Legal retained earnings cannot be negative (fiscal year &1)

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FSBP_FISCAL_YEAR026 - Legal retained earnings cannot be negative (fiscal year &1) ?

  The SAP error message FSBP_FISCAL_YEAR026 indicates that the legal retained earnings for a specific fiscal year cannot be negative. This error typically arises during financial postings or when trying to close a fiscal year in the SAP system. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  
  Negative Retained Earnings: The primary cause of this error is that the retained earnings account has a negative balance for the specified fiscal year. This can happen due to various reasons, such as:
  
  Incorrect postings in previous periods.
  Manual adjustments that resulted in a negative balance.
  Errors in the financial closing process.
  
  
  
  Configuration Issues: There may be issues with the configuration of the retained earnings account in the financial settings of the SAP system.
  
  
  Data Entry Errors: Incorrect data entry during financial transactions can lead to negative balances.
  
  
  Solution:
  
  
  Review Financial Transactions:
  
  Check the postings made to the retained earnings account for the fiscal year in question. Look for any erroneous entries that may have caused the negative balance.
  Use transaction codes like FB03 (Display Document) to review individual postings.
  
  
  
  Adjust Postings:
  
  If you identify incorrect postings, you may need to reverse or adjust those entries to correct the balance of the retained earnings account.
  Ensure that all adjustments are compliant with accounting standards and company policies.
  
  
  
  Check Configuration:
  
  Review the configuration settings for the retained earnings account in the SAP system. Ensure that the account is set up correctly in the chart of accounts and that it is not configured to allow negative balances.
  
  
  
  Consult with Finance Team:
  
  Collaborate with your finance or accounting team to understand the implications of any adjustments and to ensure that the financial statements remain accurate.
  
  
  
  Run Year-End Closing Procedures:
  
  If the issue arises during year-end closing, ensure that all necessary closing procedures have been followed correctly. This includes ensuring that all transactions for the fiscal year have been posted.
  
  
  
  Use Transaction Codes:
  
  Use transaction codes like OB53 to check the retained earnings account settings and OBY6 to review the fiscal year settings.
  
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message. SAP frequently updates its knowledge base with solutions to common problems.
  Documentation: Refer to SAP documentation for guidelines on managing retained earnings and fiscal year-end closing processes.
  Training: Ensure that users involved in financial postings are adequately trained on the implications of their entries and the importance of maintaining accurate balances in retained earnings.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it. If the problem persists, consider reaching out to SAP support for further assistance.