How To Fix AH126 - Do not use price adjustment clauses for average price

SAP Error Message - Details

• Message type: E = Error

• Message class: AH - IS-U billing (master data)

• Message number: 126

• Message text: Do not use price adjustment clauses for average price

Self-Explanatory Message

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• What is the cause and solution for SAP error message AH126 - Do not use price adjustment clauses for average price ?

  The SAP error message AH126, which states "Do not use price adjustment clauses for average price," typically occurs in the context of purchasing and procurement processes within SAP. This error is related to the use of price adjustment clauses in conjunction with materials that are managed with an average price.
  Cause:
  The error arises when a user attempts to apply a price adjustment clause (such as a price increase or decrease based on certain conditions) to a material that is set up to use average pricing. In SAP, average price materials are managed differently than standard price materials, and price adjustments are not compatible with average pricing methods. This is because average price calculations are based on the total cost of inventory over time, and applying price adjustments could disrupt this calculation.
  Solution:
  To resolve the AH126 error, consider the following options:
  
  
  Change Pricing Method: If price adjustments are necessary for your procurement process, consider changing the pricing method of the material from average price to standard price. This can be done in the material master record (MM02 transaction) under the accounting view.
  
  
  Remove Price Adjustment Clauses: If the material must remain as average price, you will need to remove any price adjustment clauses from the purchase order or contract that is causing the error.
  
  
  Review Material Master Settings: Ensure that the material master settings are appropriate for your business needs. If average pricing is not suitable for certain materials, you may need to reassess how those materials are managed.
  
  
  Consult Documentation: Review SAP documentation or consult with your SAP support team for specific guidelines on handling pricing methods and adjustments.
  
  
  Training and Awareness: Ensure that users involved in procurement are aware of the limitations and rules regarding price adjustments and average pricing to prevent future occurrences of this error.
  
  
  Related Information:
  
  Material Master: The material master record contains key information about materials, including pricing methods. Understanding how to manage this data is crucial for effective procurement.
  Pricing Procedures: Familiarize yourself with the pricing procedures in SAP, as they dictate how prices are calculated and adjusted in purchasing documents.
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates regarding this error message.
  
  By addressing the underlying cause of the error and implementing the appropriate solutions, you can effectively manage the pricing of materials in SAP without encountering the AH126 error.