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

GI254 - Overview

• 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.

GI254 - Details

• 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