How To Fix J2778 - &4 Derivation rules for preliminary costing must be converted

SAP Error Message - Details

• Message type: E = Error

• Message class: J2 - Message Class for Development Class JBT

• Message number: 778

• Message text: &4 Derivation rules for preliminary costing must be converted

What causes this issue?

As of release EA-FINSERV 200, preliminary costing for loans no longer
accesses derivation rules that have been defined specifically for
preliminary costing. The same derivation rules are now used both for
generating the PA part of the financial object and for preliminary
costing. You define the derivation rules for the PA part of the finan
cial object in Customizing (see <DS:SIMG.SIMG_CFJB01JBDDRLOAN>Maintain
Derivation Strategy</>).
You can no longer define derivation rules to be used exclusively for
preliminary costing.

System Response

The system outputs an error message when you call preliminary costing if
derivation rules that are linked to preliminary costing only are found
in the system after upgrade.

How to fix this error?

Run report RJBT_CUST_FOI_LOAN_DERI. This report converts derivation
rules defined exclusively for preliminary costing into derivation rules
for the Profitability Analysis (PA) part of the financial object. The
system inserts the derivation rules to be converted in front of the
derivation rules for the PA part of the financial object. The derivation
rules to be converted remain in the same order. Once you have run the
report, you can continue using preliminary costing.
Before running the report, check whether the conversion affects the
derivation result for financial objects and preliminary costing.
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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.

Smart SAP Assistant

• What is the cause and solution for SAP error message J2778 - &4 Derivation rules for preliminary costing must be converted ?

  The SAP error message J2778, which states "Derivation rules for preliminary costing must be converted," typically occurs in the context of the Product Costing module in SAP. This error indicates that the system has detected that the derivation rules used for preliminary costing are outdated and need to be converted to the new format or structure.
  Cause:
  
  Outdated Derivation Rules: The derivation rules for preliminary costing may have been created in an older version of SAP and are not compatible with the current system version.
  System Upgrade: If your SAP system has recently been upgraded, the derivation rules may need to be updated to align with the new functionalities or structures introduced in the upgrade.
  Configuration Changes: Changes in configuration settings related to costing or product costing may also lead to this error.
  
  Solution:
  To resolve the J2778 error, you can follow these steps:
  
  
  Convert Derivation Rules:
  
  Use the transaction code CKM3N (or the appropriate transaction for your version) to access the preliminary costing settings.
  Look for an option to convert or update the derivation rules. This may involve running a specific program or using a menu option to convert the rules to the new format.
  
  
  
  Check Customization:
  
  Review any custom derivation rules that may have been implemented. Ensure they are compatible with the current version of SAP.
  If necessary, consult with your SAP functional consultant to adjust or recreate the derivation rules.
  
  
  
  Run the Conversion Program:
  
  SAP may provide a specific program or report to convert the derivation rules. Check the SAP notes or documentation for your version to find the appropriate program.
  Execute the program to convert the rules.
  
  
  
  Testing:
  
  After conversion, perform a test run of the preliminary costing to ensure that the error does not reoccur and that the costing is calculated correctly.
  
  
  
  Consult SAP Notes:
  
  Check the SAP Support Portal for any relevant notes or patches that may address this specific error. There may be updates or fixes provided by SAP.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as CK11N (Create Cost Estimate), CK40N (Costing Run), and CKM3N (Display Costing).
  Documentation: Review SAP documentation related to product costing and derivation rules for any additional insights or guidelines.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have found.
  
  If the issue persists after following these steps, it may be beneficial to reach out to SAP support or your internal SAP team for further assistance.