How To Fix MQ741 - FS item &1 is not a balance sheet or income statement item

SAP Error Message - Details

• Message type: E = Error

• Message class: MQ - Messages for Euro Changeover Package

• Message number: 741

• Message text: FS item &1 is not a balance sheet or income statement item

What causes this issue?

You need to specify a balance sheet or income statement item as the
adjusting item. Depending on the FS item type you select, a financial
statement imbalance can occur as a result of reconciliation entries.
Your setting therefore determines whether differentials are to be
handled with or without an effect on earnings.

System Response

Error message

How to fix this error?

Enter a balance sheet or income statement item.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MQ741 - FS item &1 is not a balance sheet or income statement item ?

  The SAP error message MQ741 indicates that the financial statement item (FS item) you are trying to use is not classified as a balance sheet item or an income statement item. This error typically occurs when you are working with financial statements or reports in SAP, particularly in the context of Financial Accounting (FI) or Controlling (CO).
  Cause:
  
  Incorrect FS Item Configuration: The FS item you are trying to use may not be properly configured in the system. It might not be assigned to the correct category (balance sheet or income statement).
  Wrong FS Item Usage: You may be attempting to use an FS item in a context where it is not applicable, such as trying to include a non-financial item in a financial report.
  Missing or Incorrect Master Data: The master data for the FS item may be incomplete or incorrectly set up, leading to the system not recognizing it as a valid item for financial statements.
  
  Solution:
  
  
  Check FS Item Configuration:
  
  Go to the configuration settings for financial statement items in SAP (Transaction Code: OB58).
  Verify that the FS item in question is correctly defined as either a balance sheet item or an income statement item.
  Ensure that the FS item is assigned to the correct financial statement version.
  
  
  
  Review Usage:
  
  Ensure that you are using the FS item in the correct context. If you are generating a financial statement, make sure that all items included are valid for that statement type.
  
  
  
  Correct Master Data:
  
  Check the master data for the FS item (Transaction Code: FS00 for G/L accounts) to ensure that all necessary fields are filled out correctly.
  If the FS item is a G/L account, ensure that it is properly classified in the chart of accounts.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for additional guidance on financial statement items and their configurations.
  
  
  
  Testing:
  
  After making any changes, test the financial statement generation again to see if the error persists.
  
  
  
  Related Information:
  
  Transaction Codes: 
  
  OB58: Configuration for Financial Statement Versions
  FS00: G/L Account Master Data
  
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  User Roles: Ensure that you have the necessary authorizations to view and modify financial statement items.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in Financial Accounting.