How To Fix G4038 - Subcontracted material & has wrong recovery indicator

SAP Error Message - Details

• Message type: E = Error

• Message class: G4 - EC-CS Consolidation

• Message number: 038

• Message text: Subcontracted material & has wrong recovery indicator

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message G4038 - Subcontracted material & has wrong recovery indicator ?

  The SAP error message G4038 indicates that there is an issue with the recovery indicator for subcontracted materials in the system. This error typically arises when the recovery indicator for a subcontracted material is not set correctly, which can lead to discrepancies in inventory management and financial reporting.
  Cause:
  
  Incorrect Recovery Indicator: The recovery indicator for the material may not be set correctly in the material master record. This can happen if the material is defined as a subcontracted item but does not have the appropriate recovery settings.
  Configuration Issues: There may be configuration issues in the system related to the handling of subcontracted materials.
  Master Data Issues: The material master data may be incomplete or incorrectly maintained, leading to this error.
  
  Solution:
  
  
  Check Material Master Data:
  
  Go to the material master record (transaction code MM03) for the affected material.
  Check the "Purchasing" and "Accounting" views to ensure that the recovery indicator is set correctly for subcontracted materials.
  If the recovery indicator is incorrect, update it to the appropriate value.
  
  
  
  Review Configuration Settings:
  
  Check the configuration settings for subcontracting in the SAP system (transaction code SPRO).
  Ensure that the settings for recovery indicators for subcontracted materials are correctly defined.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help files related to subcontracting and recovery indicators to understand the expected values and settings.
  
  
  
  Test Changes:
  
  After making changes to the material master or configuration, perform a test to ensure that the error no longer occurs.
  
  
  
  Seek Help from SAP Support:
  
  If the issue persists after checking the material master and configuration, consider reaching out to SAP support for further assistance.
  
  
  
  Related Information:
  
  Recovery Indicator: This is a field in the material master that indicates how the costs associated with the material are to be recovered. It is particularly important for subcontracted materials, as it affects how costs are allocated and reported.
  Subcontracting Process: In SAP, subcontracting involves sending materials to a vendor for processing, where the vendor performs operations and returns the finished goods. Proper configuration and master data maintenance are crucial for accurate inventory and cost management.
  Transaction Codes:
  
  MM03: Display Material Master
  MM02: Change Material Master
  SPRO: Customizing Implementation Guide
  
  
  
  By addressing the recovery indicator and ensuring that all related settings are correct, you should be able to resolve the G4038 error in SAP.