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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message 06205 - Effective price higher than material price (variance > & &) ?

  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 the material master data for the affected material. Ensure that the prices are correctly maintained and reflect the current market conditions.
  Adjust Pricing: If the effective price is indeed correct, consider adjusting the material price in the system to align with the effective price.
  Analyze Costing Variances: Investigate any recent changes in production costs or overheads that may have led to the increase in effective price. Update the costing information as necessary.
  Check Configuration: Review the configuration settings related to material valuation and pricing procedures to ensure they are set up correctly.
  Consult with Finance/Controlling: If the issue persists, consult with the finance or controlling team to understand if there are any underlying issues affecting pricing.
  
  Related Information:
  
  Transaction Codes: You may use transaction codes like MM03 (Display Material), MM02 (Change Material), or CK11N (Create Cost Estimate) to review and update material pricing.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  Documentation: Refer to SAP documentation for material valuation and pricing procedures to ensure compliance with best practices.
  
  By following these steps, you should be able to identify the root cause of the error and implement a suitable solution.