How To Fix CNV_20200_CHECK016 - LIFO valuation is active and valuation level is company code

CNV_20200_CHECK016 - Overview

• Message type: E = Error

• Message class: CNV_20200_CHECK - Messages for check functions (company code merge)

• Message number: 016

• Message text: LIFO valuation is active and valuation level is company code

What causes this issue?

LIFO valuation is active and valuation level is company code.

System Response

Error

How to fix this error?

You cannot run the transformation solution Company Code Merge because
certain prerequisites have not been met. We recommend that you contact
SAP for support by creating a ticket using component CA-LT-CNV.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

CNV_20200_CHECK016 - Details

• The SAP error message CNV_20200_CHECK016 indicates that there is an issue related to the LIFO (Last In, First Out) valuation method being active in your system while the valuation level is set to the company code. This error typically arises during data migration or conversion processes, particularly when using the SAP S/4HANA Migration Cockpit or similar tools.
  
  Cause:
  
  LIFO Valuation Active: The LIFO valuation method is enabled in the system. This method is used for inventory valuation and can affect how stock is valued and reported.
  Valuation Level: The valuation level is set to the company code, which means that inventory valuation is done at the company code level rather than at the plant level. This can lead to inconsistencies when LIFO is active, as LIFO is generally more complex and is often used in specific scenarios.
  
  
  Solution:
  To resolve this error, you can consider the following steps:
  
  
  Check LIFO Settings:
  
  Go to the configuration settings in