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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message CNVA_20290_CHECK028 - LIFO valuation is active and the valuation level is company code ?

  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 the following steps:
  
  
  Check Configuration:
  
  Go to the configuration settings for asset accounting in SAP.
  Verify the settings for LIFO valuation and the valuation level.
  If LIFO valuation is not necessary for your business processes, consider switching to a different valuation method (e.g., FIFO or standard cost).
  
  
  
  Adjust Valuation Level:
  
  If LIFO valuation is required, you may need to change the valuation level to a more granular level (e.g., asset level) if your business processes allow for it.
  This may involve reconfiguring your asset accounting settings.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources related to asset accounting and valuation methods to ensure that your configuration aligns with best practices.
  
  
  
  Testing:
  
  After making changes, conduct thorough testing to ensure that asset valuations are calculated correctly and that the error no longer occurs.
  
  
  
  Seek Expert Help:
  
  If you are unsure about making these changes or if the issue persists, consider consulting with an SAP expert or your internal SAP support team for further assistance.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or patches related to this error.
  Transaction Codes: Familiarize yourself with transaction codes related to asset accounting (e.g., AS01, AS02, OAOA) to help navigate the configuration settings.
  Documentation: Review the SAP Asset Accounting documentation for detailed explanations of valuation methods and their implications.
  
  By addressing the configuration settings and ensuring that the valuation method aligns with your business needs, you should be able to resolve the CNVA_20290_CHECK028 error.