How To Fix CNVA_20290_CHECK028 - LIFO valuation is active and the valuation level is company code

CNVA_20290_CHECK028 - Overview

• Message type: E = Error

• Message class: CNVA_20290_CHECK - Message class for company code merge preanalysis

• Message number: 028

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

LIFO valuation is active and the valuation level is company code. 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.

Error message extract from SAP system. Copyright SAP SE.

CNVA_20290_CHECK028 - Details

• The SAP error message CNVA_20290_CHECK028 indicates that there is an issue related to the LIFO (Last In, First Out) valuation method in the context of asset accounting. Specifically, this error arises when LIFO valuation is active, but the valuation level is set to the company code level, which can lead to inconsistencies in how asset values are calculated and reported.
  
  Cause:
  
  LIFO Valuation Active: The system is configured to use LIFO for asset valuation.
  Valuation Level: The valuation level is set to the company code, which means that asset valuations are expected to be consistent across the entire company code.
  Incompatibility: LIFO valuation typically requires a more granular level of tracking (e.g., at the asset level) to accurately reflect the costs associated with the most recent acquisitions. When the valuation level is set to the company code, it may not be able to properly apply LIFO valuation rules.
  
  
  Solution:
  To resolve this error, you can consider