How To Fix KS097 - Account is balance sheet account: cost element category is defined

SAP Error Message - Details

• Message type: E = Error

• Message class: KS - RK-S Master Data Maintenance

• Message number: 097

• Message text: Account is balance sheet account: cost element category is defined

What causes this issue?

You want to create a primary cost element for a balance sheet account.
The <DS:DE.KATYP>cost element category</> for this purpose is <ZH>90</>
(statistical cost element for balance sheet account).
In CO, all values under cost element category 90 are updated
statistically.

System Response

You cannot change the cost element category for balance sheet accounts.

How to fix this error?

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

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 KS097 - Account is balance sheet account: cost element category is defined ?

  The SAP error message KS097 indicates that you are trying to use a balance sheet account in a context where a profit and loss account is expected. This typically occurs when you are attempting to create or post to a cost element that is defined as a balance sheet account, but the system requires a cost element that is categorized as a profit and loss account.
  Cause:
  
  Cost Element Category: The cost element you are trying to use is defined as a balance sheet account (category 01 or 02), which is not suitable for cost accounting transactions that require profit and loss accounts (category 21 for primary cost elements or category 43 for secondary cost elements).
  Configuration Issue: There may be a configuration issue in the cost element settings or in the way the accounts are set up in the chart of accounts.
  
  Solution:
  
  
  Check Cost Element Configuration:
  
  Go to the transaction code KA03 (Display Cost Element) and check the cost element in question.
  Verify the cost element category. If it is set as a balance sheet account, you will need to create a new cost element with the appropriate category for profit and loss.
  
  
  
  Create a New Cost Element:
  
  If necessary, create a new cost element using transaction code KA01 (Create Cost Element).
  Ensure that you select the correct cost element category (e.g., 21 for primary costs) that aligns with your intended use.
  
  
  
  Review Account Assignment:
  
  Ensure that the account assignment in your transaction is correct and that you are using the appropriate cost element for the type of transaction you are processing.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the correct configuration or the implications of changing cost element categories, consult with your finance or accounting team to ensure compliance with accounting standards and practices.
  
  
  
  Related Information:
  
  Cost Element Categories: Understanding the different cost element categories is crucial. Categories 01 and 02 are for balance sheet accounts, while categories 21 and 43 are for profit and loss accounts.
  SAP Documentation: Refer to SAP Help documentation for detailed information on cost element configuration and the implications of different categories.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as KA01 (Create Cost Element), KA02 (Change Cost Element), and KA03 (Display Cost Element) for managing cost elements in SAP.
  
  By following these steps, you should be able to resolve the KS097 error and ensure that your cost elements are correctly configured for your accounting needs.