How To Fix KD074 - Hierarchy no. & for sender smaller than/equal to that for receiver &

SAP Error Message - Details

• Message type: E = Error

• Message class: KD - CO Settlement

• Message number: 074

• Message text: Hierarchy no. & for sender smaller than/equal to that for receiver &

What causes this issue?

You are settling several objects in one run. In the process, some of
these objects receive values from other objects in the same settlement
run.
To ensure that all the objects in a settlement run are settled to zero,
you must settle the objects in a particular order. You do this by
assigning hierarchy numbers from 0 to 999.
,,Example:
In a settlement run, order 1 is settled to order 2. Order 2 is in turn
settled to order 3.
You must settle order 1 first, then order 2 (with the debits arising
from the settlement of order 1), and finally order 3 (with the debits
from the settlement of order 1 and order 2).
This means that order 1 must have the highest hierarchy number, order 2
a lower one, and order 3 the lowest - e.g. 300, 200, 100.

System Response

This message is only a warning. You can still save your orders without
amending the hierarchy numbers. However, it may then be the case that
not all objects are settled to zero in one run. You may then have to
start settlement more than once.

How to fix this error?

In simple cases, the system adapts the hierarchy number for the sender.
In other cases, you need to adapt it.
Use the "Settlement hierarchy" function key to display an overview of
which sender settles to which receiver. You can also display the
hierarchy numbers that have associated objects. You can use this to
check whether a loop has occurred. For example, order 1 -> order 2 ->
order 3 -> order 1.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KD074 - Hierarchy no. & for sender smaller than/equal to that for receiver & ?

  The SAP error message KD074 typically occurs in the context of controlling (CO) when dealing with cost center accounting or internal orders. This error indicates that there is a mismatch in the hierarchy levels of the sender and receiver objects in a distribution or assessment process. Specifically, it means that the hierarchy number for the sender is smaller than or equal to that of the receiver, which is not allowed in the context of the operation being performed.
  Cause:
  
  Hierarchy Level Mismatch: The sender and receiver objects are not aligned in terms of their hierarchy levels. For example, if you are trying to distribute costs from a cost center to another cost center or an internal order, the sender must be at a higher hierarchy level than the receiver.
  Incorrect Configuration: The configuration of the cost center hierarchy or the internal order hierarchy may not be set up correctly, leading to this error.
  Data Entry Errors: There may be errors in the data entry where the sender and receiver are incorrectly specified.
  
  Solution:
  
  Check Hierarchy Levels: Review the hierarchy levels of both the sender and receiver objects. Ensure that the sender is at a higher level than the receiver in the hierarchy.
  Adjust Configuration: If the hierarchy levels are incorrect, you may need to adjust the configuration in the SAP system. This could involve changing the hierarchy settings or reassigning cost centers or internal orders to the correct levels.
  Review Distribution/Assessment Cycle: Check the distribution or assessment cycle settings to ensure that they are correctly defined and that the sender and receiver objects are appropriately assigned.
  Correct Data Entry: If the error is due to incorrect data entry, correct the sender and receiver assignments in the transaction that triggered the error.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like KSU5 (for distribution) or KSU1 (for assessment) to review and adjust the settings.
  Hierarchy Maintenance: Use transaction code OKEU to maintain the hierarchy settings for cost centers or internal orders.
  Documentation: Refer to SAP documentation or help files for detailed guidance on setting up and managing cost center hierarchies and distribution/assessment processes.
  
  If the issue persists after checking these areas, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in controlling (CO) to further investigate the problem.