Retained earnings Account not accepting new LE value

Summary:

Dear Experts,

We are in the process of adding a new entity to our setup. A new Legal Entity (LE) value has been created in the Chart of Accounts (COA) entity value set. For this entity, we are reusing the existing:

• Calendar / Accounting Calendar
• Currency
• Chart of Accounts (COA)
• Accounting Method / Subledger Accounting Method

We have successfully created the primary ledger. However, when attempting to assign the newly created LE value to the Retained Earnings account in the “Specify Ledger Options” setup, we encounter the following error:

"You can't enter an account with a parent segment value. (GL-780043)"

The issue is puzzling because the newly created LE value is not defined as a parent or summary value, yet the system still raises this error.