SAP Knowledge Base Article - Public

1498350 - Cost Center and Business Residence Property Settings for Financial Veto Check Implementation


You have an inactive organizational structure in which you have defined the top organizational unit as a company. This organizational unit is not defined as a cost center or a business residence as their child organizational units contain such definitions. You have also selected a financial related business function for this organizational unit. When you check the organizational structure you may receive error messages such as

  • 01.01.2010 to 31.12.9999; org unit A000 (XXX inc.) must be below a cost center. The org unit itself can also be flagged as a cost center
  • 01.01.2010 to 31.12.9999; org unit A000 (XXX inc.) must be below a business residence. The org unit itself can also be flagged as a business residence

Reproducing the Issue

  1. Go to the Organizational Management work center.
  2. Select the Org Structures view and select the Edit Org Structures tab in the Common Tasks.
  3. In the new window select the relevant organizational structure and the top organizational unit.
  4. Select the option (option under the down arrow mark) Check Selected and Dependent Org Units which will cause the error messages to be displayed.



According to the veto check implementations in financials two things are required if an organizational unit is a functional unit

  • A cost center should be derivable from a functional unit and
  • A business residence should be derivable from a functional unit.

Since you have selected a function, the organizational unit has become a functional unit and hence for satisfying the financial veto checks a cost center and a business residence is required.


In the Functions tab for Finance and Administration functions uncheck any function. Then there will be no inconsistency.

In case you want that particular organizational unit to have business functions then the business residence should also be assigned.


KBA , SRD-FIN-ACR , Receivables , Product Enhancement


SAP Business ByDesign all versions