FS item &1 is not a balance sheet or income statement item

What causes this issue?

You need to specify a balance sheet or income statement item as the
adjusting item. Depending on the FS item type you select, a financial
statement imbalance can occur as a result of reconciliation entries.
Your setting therefore determines whether differentials are to be
handled with or without an effect on earnings.

System Response

Error message

How to fix this error?

Enter a balance sheet or income statement item.

Error message extract from SAP system. Copyright SAP SE.