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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message KM125 - Account &1 is not a profit/loss account ?

  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 by navigating to the account in the chart of accounts and checking its configuration. Ensure that it is set up as a profit and loss account.
  Use Correct Account: If the account is indeed a balance sheet account, you will need to use a different account that is classified as a profit and loss account for your posting.
  Account Configuration: If you believe the account should be a P&L account, you may need to adjust its configuration. This typically requires access to the configuration settings in SAP (transaction code OBY6 for account types).
  Consult with Finance Team: If you are unsure about which account to use or how to configure it, consult with your finance or accounting team to ensure compliance with accounting standards and practices.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes such as FS00 (to display/change G/L account master data) or OBY6 (to configure account types).
  Documentation: Refer to SAP documentation or help files for more detailed information on account types and their configurations.
  SAP Notes: Check SAP Notes for any specific issues or patches related to this error message, as there may be updates or known issues that could provide additional context or solutions.
  
  By following these steps, you should be able to resolve the KM125 error and proceed with your financial postings in SAP.