3423090 - Error FH085 - "Account still has balance...." raise when changing "Only balances in local currency” flag - SAP S/4HANA Cloud

When trying to change “only balances in local currency” flag in Manage G/L Account Master Data for a G/L Account, and get the error "Account still has balance...." (Message no. FH085).

SAP S/4HANA Cloud Public Edition

1. Go to App Manage G/L Account Master Data or SSCUI/Activity 150001
2. Enter the parameters for the G/L account in question (G/L account number, Company Code).
3. Go to the "Control" tab.
4. Try to remove flag “only balances in local currency” .
5. The system gives Message no. FH085 "Account still has balance......".

The account has a balance not equal to zero. 

The check for this changes ensures the balance has to be zero in P system for each of the last three fiscal years (current fiscal year and the two fiscal year before).

As documents from the last two years can be reversed, a balance check is performed for the current fiscal year and the 2 fiscal years before.
For this reason, the balances must be set for the current fiscal year as well as for the 2 last fiscal years in all currencies to zero.
Therefore, previously posted documents should no longer be reversed or cleared when 'Only balances in local currency' has been changed.

It is interpreted that the customer is aware of the fact that changing this indicator could lead to inconsistencies in transaction currency update e.g. in case later a old posting with old update logic would be reversed by real reversal etc.
For example, if the flag "balances in local currency" has been deactivated for a specific G/L account in period 10/2023. That means the balances were updated in local currency only before that date.
For reversing a foreign currency document from previous fiscal years (e.g. 2022, 2021) after the changes in master data, the total table would be updated in foreign currency.
This could lead the inconsistencies in total table, as the values of the original and reversal documents are saved with different currency in total table.

SAP Help Portal: 

Maintaining Your Chart of Accounts (Two-System Landscape) - How to Make Changes

Chart of Accounts Maintenance in a 3-System Landscape

Only balances in local crcy,  Only balances in local currency, account has a balance, FH085 , KBA , FI-GL-GL-N-2CL , Master Data (Public Cloud) , FI-FIO-GL-MD-2CL , Master Data Apps (Public Cloud) , Problem