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"The account type for main account <AccountName> is not valid" error when posting in General ledger

Summary

This article provides a solution for an error that occurs when you try to post a transaction to a main account in General ledger in Microsoft Dynamics 365 Finance. The error states that the account type for the main account isn't valid and must be the account type of Financial. This problem typically involves a main account that has an account type of Total or Reporting.

Note

If you experience a dimension-related posting error, see Common dimension-related errors.

Symptoms

When you try to post a transaction in General ledger, you receive the following error message:

The account type for main account... is not valid. The main account type must be Financial.

Cause

This error occurs if a transaction references a main account that has an account type set to Total or Reporting. These account types are for summarization and financial reporting only. They don't permit direct transaction entry.

Solution

To resolve this issue, check the main account type. Either correct the transaction or update the account type, as appropriate:

  1. Go to General ledger > Chart of accounts > Accounts > Main accounts.
  2. Select the main account that's referenced in the error message.
  3. On the General FastTab, review the Main account type field.
  4. Take one of the following actions:
    • If you selected the wrong account, change the transaction to use an account that has a valid type, such as Profit and loss, Revenue, Expense, Asset, or Liability.
    • If the account type is incorrect, update the Main account type field.

Note

Total and Reporting accounts are typically used in row definitions for financial reports. They aggregate balances from other accounts and shouldn't receive direct postings. Changing the account type might affect financial reporting. Therefore, review your chart of accounts design before you make changes.