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

MQ888 - Overview

• 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