How To Fix RETMFI037 - &1: cost-of-sales accounting active, enter a functional area

RETMFI037 - Overview

• Message type: E = Error

• Message class: RETMFI - Messages for Posting Terms

• Message number: 037

• Message text: &1: cost-of-sales accounting active, enter a functional area

What causes this issue?

Based on the system settings, you are required to enter a functional
area.
The functional area that you enter applies automatically to lower-level
objects. Therefore, it is sufficient to enter the functional area at the
business entity level.
You only need to enter a functional area in lower-level objects
(buildings, property, rental object, or real estate contract) when the
functional area on the higher-level object is different.
Changes to the functional area on the higher-level object automatically
affect all lower-level objects for which no functional area was
explicitly entered.

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?

Enter the functional area (preferably on the level of the business
entity) for the <ZK>Organizational Assignment</> term category on the
<ZK>Posting
Parameters</> tab page.

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 RETMFI037 - &1: cost-of-sales accounting active, enter a functional area ?

  The SAP error message RETMFI037 indicates that cost-of-sales accounting is active in your system, but a functional area has not been specified for the transaction you are trying to execute. This error typically occurs in the context of financial accounting and controlling when you are trying to post a transaction that requires a functional area to be defined.
  
  Cause:
  The primary cause of this error is that the system is configured to require a functional area for cost-of-sales accounting, but the transaction being processed does not include this information. Functional areas are used in SAP to categorize costs and revenues for reporting purposes, especially in organizations that need to comply with specific accounting standards.
  
  Solution:
  To resolve this error, you need to ensure that a functional area is specified in the transaction you are trying to post. Here are the steps you can take:
  
  
  Identify the Transaction: Determine which transaction is causing the error. This