How To Fix KM125 - Account &1 is not a profit/loss account

KM125 - Overview

• Message type: E = Error

• Message class: KM - Error messages for Profit Center Accounting

• Message number: 125

• Message text: Account &1 is not a profit/loss account

System Response

Processing was terminated.

How to fix this error?

Enter a profit and loss account.

Error message extract from SAP system. Copyright SAP SE.

KM125 - Details

• The SAP error message KM125, which states "Account &1 is not a profit/loss account," typically occurs in the context of financial postings, particularly when dealing with cost accounting or internal orders. This error indicates that the account you are trying to use is not classified as a profit and loss (P&L) account, which is necessary for certain types of postings.
  
  Cause:
  
  Account Type: The account you are trying to post to is likely a balance sheet account (asset or liability) rather than a profit and loss account (revenue or expense).
  Account Configuration: The account may not be configured correctly in the chart of accounts or may not have the appropriate settings for cost accounting.
  Posting Type: The type of posting you are attempting (e.g., expense posting) requires a P&L account, and using a balance sheet account will trigger this error.
  
  
  Solution:
  
  Check Account Type: Verify the account type in the SAP system. You can do this