How To Fix C+723 - Periodic unit price of the material will be negative

SAP Error Message - Details

• Message type: E = Error

• Message class: C+ -

• Message number: 723

• Message text: Periodic unit price of the material will be negative

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message C+723 - Periodic unit price of the material will be negative ?

  The SAP error message C+723, which states "Periodic unit price of the material will be negative," typically occurs during the processing of inventory valuation or when attempting to post a goods movement that affects the material's valuation. This error indicates that the system has calculated a periodic unit price for the material that is negative, which is not allowed in SAP.
  Causes:
  
  Negative Stock Values: If there are negative stock values for the material, it can lead to a negative periodic unit price.
  Incorrect Valuation Method: The valuation method set for the material (e.g., moving average price) may not be appropriate, especially if there are inconsistencies in the stock movements.
  Incorrect Posting: There may have been incorrect postings or adjustments made to the material that have led to an imbalance in the valuation.
  Inventory Adjustments: Manual adjustments or corrections in inventory that do not align with the actual stock levels can cause this issue.
  Price Changes: If there are significant price changes or adjustments that are not properly reflected in the system, it can lead to negative pricing.
  
  Solutions:
  
  Check Stock Levels: Review the stock levels for the material in question. Ensure that there are no negative stock quantities.
  Review Material Master Data: Check the material master data for the valuation class and valuation method. Ensure that they are set correctly.
  Analyze Recent Transactions: Look at recent transactions involving the material to identify any incorrect postings or adjustments that may have caused the issue.
  Adjust Inventory: If there are discrepancies, consider making necessary adjustments to the inventory to correct the stock levels.
  Recalculate Prices: If the periodic unit price is incorrect, you may need to recalculate the prices for the material. This can often be done through transaction codes like MR21 (Change Material Price) or through the appropriate inventory valuation transactions.
  Consult with Finance: If the issue persists, it may be beneficial to consult with the finance team to ensure that all financial postings are correct and that there are no underlying issues affecting the valuation.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  MM03: Display Material
  MB52: List Warehouse Stocks on Hand
  MR21: Change Material Price
  MB1A: Goods Withdrawal
  
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  Documentation: Review SAP documentation regarding material valuation and inventory management for best practices and troubleshooting steps.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.