How To Fix H1704 - The company code is not in FM area &3

H1704 - Overview

• Message type: E = Error

• Message class: H1 - Messages Used in HR Funds and Position Management

• Message number: 704

• Message text: The company code is not in FM area &3

What causes this issue?

The company code entered for the organizational unit &v2& is not in the
same FM area as the root organizational unit &v1& (FM area &v3&), but
is in FM area &v4& instead.
Since integration between Funds Management and HR Funds and Position
Management has been activated for FM area &v3&, this means that the
entire organizational structure must be assigned to the same FM area.

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?

In infotype 1008, define a company code for organizational unit &v2&
that is in FM area &v3&.

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 H1704 - The company code is not in FM area &3 ?

  The SAP error message H1704 ("The company code is not in FM area &3") typically occurs in the context of Funds Management (FM) when there is a mismatch between the company code and the FM area. This error indicates that the system cannot find a valid relationship between the specified company code and the FM area in the configuration.
  
  Cause:
  
  Configuration Issue: The company code is not assigned to the specified FM area in the configuration settings.
  Incorrect Data Entry: The company code or FM area may have been entered incorrectly in the transaction or report.
  Missing Integration: The integration between Financial Accounting (FI) and Funds Management (FM) may not be properly set up.
  
  
  Solution:
  To resolve the H1704 error, you can follow these steps:
  
  
  Check Configuration:
  
  Go to the SAP Customizing Implementation Guide (SPRO).
  Navigate to Public Sector Management > Funds Management > Master Data > Define FM Areas.
  Ensure that the company code is correctly assigned to the