How To Fix BK223 - Transfer prices are active; Use automatic allocation

SAP Error Message - Details

• Message type: E = Error

• Message class: BK - Create, Display, Reverse Controlling Document

• Message number: 223

• Message text: Transfer prices are active; Use automatic allocation

What causes this issue?

You want to allocate costs manually, but this is only possible in
version zero.
As you are working with <DS:GLOS.transfer_price>transfer prices</>, the
allocation could be insufficient in version zero.

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

If the message is an error message, execute automatic allocation.
If the message is not an error message, check if it would be better to
use automatic allocation in spite of this, as this method is not able
to include transfer prices.
In Customizing, you can change this message from an error message to a
warning, or note, or you can deactivate it altogether. In the
Implementation Guide (IMG), choose <LS>General Controlling</>
<DS:SIMG.SIMG_CFMENUORK3OBA5>Change Message Control</> (Work area: BK,
message number: 223)

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message BK223 - Transfer prices are active; Use automatic allocation ?

  The SAP error message BK223, which states "Transfer prices are active; Use automatic allocation," typically occurs in the context of financial accounting and controlling when dealing with internal pricing and allocations between different cost centers or profit centers. This error indicates that the system has detected that transfer pricing is enabled, and it is prompting the user to utilize automatic allocation methods instead of manual ones.
  Cause:
  
  Transfer Pricing Configuration: The error arises when transfer pricing is configured in the system, and the user attempts to perform a transaction that requires allocation of costs or revenues without using the automatic allocation method.
  Manual Allocation Attempt: The user may be trying to manually allocate costs or revenues in a scenario where the system expects automatic allocation due to the active transfer pricing settings.
  Inconsistent Settings: There may be inconsistencies in the configuration settings for the controlling area, cost centers, or profit centers that lead to this error.
  
  Solution:
  
  Use Automatic Allocation: Follow the system's recommendation and use the automatic allocation method for the transaction you are trying to perform. This typically involves using the appropriate transaction codes or processes that support automatic allocation.
  Check Configuration: Review the configuration settings for transfer pricing in the SAP system. Ensure that the settings align with your organization's internal pricing policies and that they are correctly set up for the relevant controlling area.
  Transaction Codes: Familiarize yourself with the relevant transaction codes that facilitate automatic allocation, such as:
  
  KSU5: For executing automatic allocations.
  KSV5: For executing assessments.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for detailed guidance on how to set up and use automatic allocations in the context of transfer pricing.
  Seek Help from SAP Support: If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert to troubleshoot the specific configuration or transaction that is causing the error.
  
  Related Information:
  
  Transfer Pricing: This is a method used to allocate costs and revenues between different entities within the same organization, ensuring that transactions are priced fairly and comply with regulatory requirements.
  Automatic Allocation: This refers to the process where the system automatically distributes costs or revenues based on predefined rules and criteria, reducing manual intervention and potential errors.
  SAP Modules: This error is primarily related to the SAP Controlling (CO) module, which deals with internal cost management and reporting.
  
  By addressing the configuration and following the recommended practices for automatic allocation, you should be able to resolve the BK223 error effectively.