How To Fix GI254 - Ledger &, CA &, P&L type &: No retained earnings account assigned

SAP Error Message - Details

• Message type: E = Error

• Message class: GI - FI-SL update

• Message number: 254

• Message text: Ledger &, CA &, P&L type &: No retained earnings account assigned

What causes this issue?

You are carrying out a posting to a previous year. This involves both
making a posting to ledger &V1& and automatically carrying forward the
balance for this ledger.
Profit and loss accounts are now carried forward to a retained earnings
account which you can assign per chart of accounts and income statement
type (in Customizing).
In Customizing, you assigned the chart of accounts &V2& to this ledger
(at ledger/company code). The income statement account type of the
account of the current line item is &V3&. This means that to determine
the retained earnings account, the system searches for the entry: Chart
of accounts &V2&, income statement account type &V3&. This entry does
not however exist.

System Response

Posting is terminated.

How to fix this error?

Assign a retained earnings account for chart of accounts &V2& and
income statement account type &V3&:
<DS:TRAN.GCS7>Proceed</>

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message GI254 - Ledger &, CA &, P&L type &: No retained earnings account assigned ?

  The SAP error message GI254 indicates that there is no retained earnings account assigned for the specified ledger, company code, and profit and loss (P&L) type. This error typically occurs during the closing process in financial accounting when the system attempts to post retained earnings but cannot find the appropriate account configuration.
  Cause:
  
  Missing Configuration: The retained earnings account has not been assigned in the configuration settings for the specific ledger and company code.
  Incorrect P&L Type: The P&L type being used may not have a retained earnings account assigned.
  Company Code Settings: The company code settings may not be properly configured to include a retained earnings account.
  
  Solution:
  To resolve the GI254 error, follow these steps:
  
  
  Check Configuration:
  
  Go to the SAP Customizing Implementation Guide (SPRO).
  Navigate to Financial Accounting (New) > General Ledger Accounting (New) > Master Data > G/L Accounts > Preparation > Define Retained Earnings Account.
  Ensure that a retained earnings account is defined for the relevant company code and ledger.
  
  
  
  Assign Retained Earnings Account:
  
  If no account is assigned, create or assign a valid retained earnings account (usually a balance sheet account) for the relevant P&L type and ledger.
  Make sure that the account is set up correctly in the chart of accounts.
  
  
  
  Check P&L Type:
  
  Verify that the P&L type being used is correctly configured to point to the retained earnings account.
  You can check this in the same configuration area where you defined the retained earnings account.
  
  
  
  Review Company Code Settings:
  
  Ensure that the company code settings are correctly configured to include the necessary accounts for financial closing.
  
  
  
  Test the Configuration:
  
  After making the necessary changes, perform a test closing to ensure that the error does not reoccur.
  
  
  
  Related Information:
  
  Transaction Codes: You may use transaction codes like OB53 (for retained earnings account assignment) and OBY6 (for company code settings) to navigate directly to the relevant configuration areas.
  Documentation: Refer to SAP documentation or help files for detailed steps on configuring retained earnings accounts and P&L types.
  Support: If the issue persists after checking the configuration, consider reaching out to your SAP support team or consulting with an SAP FI/CO expert for further assistance.
  
  By following these steps, you should be able to resolve the GI254 error and ensure that your financial closing processes run smoothly.