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

SAP Error Message - Details

• 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 could be a journal entry, invoice posting, or any other financial transaction.
  
  
  Enter Functional Area: When entering the transaction, look for a field labeled "Functional Area" or similar. You will need to enter the appropriate functional area code that corresponds to the cost center or department related to the transaction.
  
  
  Check Configuration: If you are unsure about which functional area to use, consult with your finance or controlling team to understand the correct codes to use. Additionally, ensure that the functional areas are properly configured in your SAP system.
  
  
  Review Document Types: Some document types may have specific requirements for functional areas. Check if the document type you are using requires a functional area and ensure that it is set up correctly.
  
  
  User Authorization: Ensure that you have the necessary authorizations to enter or modify the functional area in the transaction.
  
  
  Consult Documentation: If you are still having trouble, refer to SAP documentation or consult with your SAP support team for further assistance.
  
  
  Related Information:
  
  Functional Areas: These are used in SAP to classify costs and revenues for internal reporting. They are particularly important for organizations that need to report financial information according to specific standards (e.g., IFRS).
  Cost-of-Sales Accounting: This is a method of accounting that focuses on the costs associated with the production of goods sold by a company. It is essential for analyzing profitability and cost management.
  SAP Configuration: The requirement for functional areas can be configured in the SAP system. If your organization does not require functional areas, this setting can be adjusted by a system administrator.
  
  By following these steps, you should be able to resolve the RETMFI037 error and successfully post your transaction in SAP.