3264798 - Error KM124 Occurs During Non-Intercompany Posting Due to Incorrect Trading Partner Settings in SAP S/4HANA Cloud Public Edition

When attempting to make postings in a non-intercompany scenario (e.g., supplier invoice or goods movements), the following error occurs:
KM124: The group transfer accounts have not been defined.

The issue is inconsistent—appearing for some Purchase Orders (POs) but not for others.

This error occurs even though the posting is not part of an intercompany scenario.

SAP S/4HANA Cloud Public Edition

The Business Partner (supplier) involved in the posting process has a Trading Partner maintained in the Control tab of its master data. While the current scenario represents non-intercompany processes (e.g., transactions between plants within the same Company Code or transactions unrelated to intercompany activities), the presence of a Trading Partner triggers SAP’s intercompany-specific behavior under Parallel Valuation logic (e.g., Group View).

The error KM124 is caused when the system expects a Clearing Account for intercompany postings but finds no configuration because non-intercompany scenarios should not involve such accounts.

Key Explanation:

• Trading Partners are designed for use in Intercompany Processes, which involve transactions between Company Codes within the same corporate group. Examples of intercompany scenarios include:

  • Classic Intercompany Sales
  • Classic Intercompany Stock Transfers
  • Advanced Intercompany Sales
  • Advanced Intercompany Stock Transfers

• Non-intercompany processes, such as goods movements between plants within the same Company Code or sales to external third-party customers, are not intercompany processes. In such cases, the Trading Partner should not be maintained in the Business Partner.

• The error occurs because maintaining a Trading Partner in a supplier's master data causes the system to classify the process as intercompany, even though the transaction is strictly non-intercompany and does not involve intercompany-related accounts such as the Transfer Clearing Valuation (TCV) account.

To resolve the issue:

1. Remove Trading Partner Settings if the Process Is Not Intercompany:
   If the posting scenario is not an intercompany process, ensure the Trading Partner value is removed from the Supplier's Business Partner master data in the Control tab.

   This prevents the system from incorrectly recognizing the scenario as intercompany and eliminates the requirement for intercompany-specific accounts.

2. Configure Clearing Accounts for Intercompany Scenarios (Optional):
   If intercompany processes are required (e.g., transactions between Company Codes within the same corporate group), the necessary clearing accounts (e.g., Transfer Clearing Valuation Account) must be configured under 2.4.4: Mandatory - Configure Clearing Between Company Codes, as part of the test script for Scope Item 5W2.
   This ensures that intercompany transactions operate smoothly within the system.

Note: If your organization does not intend to use intercompany scenarios, it is critical to ensure no extraneous Trading Partner settings are maintained for Business Partners that should operate only within non-intercompany processes.

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