How To Fix MQ888 - Balances in LC only is not active for acct &1 company code &2

SAP Error Message - Details

• Message type: E = Error

• Message class: MQ - Messages for Euro Changeover Package

• Message number: 888

• Message text: Balances in LC only is not active for acct &1 company code &2

What causes this issue?

For account &V1& in company code &V2&, the "Balances only in local
currency" flag is not active in the account master record. However,
this flag must be activated. If it is not active, you could incur
problems with the automatic clearing functions following the local
currency changeover. For more information, see note 118177.

System Response

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

How to fix this error?

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 MQ888 - Balances in LC only is not active for acct &1 company code &2 ?

  The SAP error message "MQ888 Balances in LC only is not active for acct &1 company code &2" typically occurs in the context of financial accounting, particularly when dealing with foreign currency transactions and balance sheet accounts. This error indicates that the system is trying to process a transaction that requires the account to be set up for local currency (LC) balances, but this configuration is not active for the specified account and company code.
  Cause:
  
  Account Configuration: The account specified in the error message is not configured to allow balances in local currency. This can happen if the account is set up to only allow balances in a different currency (e.g., document currency or group currency).
  Company Code Settings: The company code settings may not allow for local currency balances for the specified account.
  Transaction Type: The type of transaction being processed may require local currency balances, but the account is not set up to handle this.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Account Configuration:
  
  Go to the account master data for the specified account (transaction code FS00).
  Verify the settings for the account in the relevant company code. Ensure that the "Balances in LC only" option is activated if you want to allow local currency balances.
  
  
  
  Adjust Company Code Settings:
  
  Check the company code settings (transaction code OBY6).
  Ensure that the local currency settings are correctly configured for the company code in question.
  
  
  
  Review Transaction Type:
  
  If the transaction type being processed requires local currency balances, ensure that the account is appropriate for that type of transaction.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific guidance on configuring accounts for local currency balances.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to ensure that the error is resolved.
  
  
  
  Related Information:
  
  Transaction Codes: 
  
  FS00: Display/Change G/L Account Master Data
  OBY6: Company Code Global Parameters
  
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or solutions related to this error message.
  User Roles: Ensure that you have the necessary authorizations to make changes to account settings and company code configurations.
  
  If the issue persists after following these steps, it may be beneficial to engage with your SAP support team or consult with an SAP expert for further assistance.