SAP Note 13181 - CO Substitution does not have any effect

Symptom:

Program : SAPLRKIP
CO substitution is not carried out even though it has been created
correctly and is active for the accounting area.

CO validations ARE carried out. (This can be tested with a simple
validation: Prereq = T, Check = F).

Cause and prerequisites

The account used is not assigned to a cost element.

Solution
Method 1: Create cost element
-----------------------------
Create a primary cost element that has the same number as the account.
The cost element type is '1'.

This can be done through the Cost Center Accounting master data menu:
Accounting->Controlling->Cost center accounting->Master data->
-> Cost element->Create primary.

Method 2: Automatically create cost elements.
-----------------------------
Automatically create cost elements for the accounts.
In the configuration menu for cost center accounting select:

Master data -> Coste elements -> Create automatically ->
-> Cost element list
Now you can generate a comple list of cost elements for one chart of
accounts. Once again the type should be '1' (primary cost element).

Key word: Substitution