How To Fix 06205 - Effective price higher than material price (variance > & &)

06205 - Overview

• Message type: E = Error

• Message class: 06 -

• Message number: 205

• Message text: Effective price higher than material price (variance > & &)

What causes this issue?

INCLUDE NA_MATPRICE LANGUAGE EN
The variance has exceeded the defined variance tolerance for the
specified <GL:company_code>company code</> by &V1& &V2&.

How to fix this error?

INCLUDE NA_T160M LANGUAGE EN
DEFINE &OBJEKTE& = 'Variance tolerances'
INCLUDE NA_EINK_CUST LANGUAGE EN

<DS:SIMG.SIMG_CFMENUOLMEOMEU>Define tolerance limits</>
ENDIF

Error message extract from SAP system. Copyright SAP SE.

06205 - Details

• The SAP error message "06205 Effective price higher than material price (variance > & &)" typically occurs in the context of inventory management or material valuation. This error indicates that the effective price of a material (which may include various costs such as overhead, labor, etc.) is higher than the material price defined in the system, leading to a variance that exceeds a specified threshold.
  Causes:
  
  Price Variance: The effective price calculated for the material (including all associated costs) exceeds the standard or moving average price set in the system.
  Incorrect Material Master Data: The material master data may not be updated correctly, leading to discrepancies in pricing.
  Costing Variances: Changes in production costs, overheads, or other factors that affect the effective price may not have been reflected in the material price.
  
  Configuration Issues: There may be issues with the configuration of the valuation classes or pricing procedures in the system.
  
  Solutions:
  
  Review Material Master Data: Check