How To Fix MN174 - G/L account & defined for both income and provisions for income

SAP Error Message - Details

• Message type: E = Error

• Message class: MN - Message class for subsequent settlement (Purchasing)

• Message number: 174

• Message text: G/L account & defined for both income and provisions for income

What causes this issue?

Settlement with regard to this condition record is carried out by means
of a credit memo document. This document cannot be created. Both rebate
income and provisions for rebate income are posted to G/L account &V1&.
This is not allowed.
When a credit note is cancelled, the system determines the settled
income and provisions for income on the basis of the G/L accounts that
have been set up, in order to correct the statistical data. A
precondition for this is that different G/L accounts are used.
For this reason, settlement accounting is only permissible with
different G/L accounts.

System Response

Settlement with regard to the rebate arrangement will not be carried
out.
&WHAT_TO_DO& (system administrator)
Change the G/L account settings in Customizing. In particular, check
chart of accounts no. &V2& and the transaction/event keys &V3& and
&V4&.
<DS:SIMG.SIMG_CFMENUOLME_KONT>Set up account determination for
subsequent settlement</>

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MN174 - G/L account & defined for both income and provisions for income ?

  The SAP error message MN174 indicates that a General Ledger (G/L) account has been defined for both income and provisions for income, which is not allowed. This situation typically arises when the system detects that the same G/L account is being used for both types of transactions, leading to potential inconsistencies in financial reporting.
  Cause:
  
  Account Configuration: The G/L account in question has been set up in a way that it is categorized for both income and provisions. This can happen during the configuration of the account in the chart of accounts.
  Transaction Posting: A transaction is being attempted that involves posting to this G/L account in a manner that conflicts with its defined purpose.
  
  Solution:
  
  
  Review G/L Account Configuration:
  
  Go to the G/L account configuration in the SAP system (Transaction Code: FS00).
  Check the account settings to see if it is marked for both income and provisions. You may need to consult with your finance team to determine the correct categorization.
  
  
  
  Create Separate G/L Accounts:
  
  If the G/L account is indeed being used for both purposes, create separate G/L accounts for income and provisions. This will help maintain clarity and accuracy in financial reporting.
  Ensure that the new accounts are properly configured and categorized according to your organization's accounting policies.
  
  
  
  Adjust Transaction Posting:
  
  Review the transaction that triggered the error. Ensure that it is posting to the correct G/L account based on the nature of the transaction (income vs. provision).
  If necessary, modify the transaction to use the appropriate G/L account.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or your organization's internal guidelines for G/L account setup and usage to ensure compliance with best practices.
  
  
  
  Related Information:
  
  Transaction Codes: 
  
  FS00: G/L Account Master Data
  OBY6: Define G/L Account for Income and Provisions
  
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates regarding this error message.
  Testing: After making changes, conduct thorough testing to ensure that the error does not recur and that financial reports are accurate.
  
  By addressing the configuration of the G/L account and ensuring that transactions are posted correctly, you can resolve the MN174 error and maintain the integrity of your financial data in SAP.