SAP Message RETMFI037 - &1: cost-of-sales accounting active, enter a functional area

Diagnosis
Based on the system settings, you are required to enter a functionalarea.
The functional area that you enter applies automatically to lower-levelobjects. Therefore, it is sufficient to enter the functional area at thebusiness entity level.
You only need to enter a functional area in lower-level objects(buildings, property, rental object, or real estate contract) when thefunctional area on the higher-level object is different.
Changes to the functional area on the higher-level object automaticallyaffect all lower-level objects for which no functional area wasexplicitly entered.

Procedure
Enter the functional area (preferably on the level of the businessentity) for the Organizational Assignment term category on thePostingParameters tab page.