How To Fix KD283 - WIP/cost of sales can only be settled after reversal

SAP Error Message - Details

• Message type: E = Error

• Message class: KD - CO Settlement

• Message number: 283

• Message text: WIP/cost of sales can only be settled after reversal

What causes this issue?

You can post revenues to the sender (revenue cost elements)
The sender has a results analysis key.
In settlement, the accrued actual costs (work in process, costs of
sales - calculated in the earned value calculation) are settled.
However, in the past the posted, non-accrued actual costs for this
sender were settled.
You cannot change from one to the other in this way without first
reversing settlements made up to now.

How to fix this error?

Settling costs not accrued
If you do not want to settle such costs any longer, remove the results
analysis key from the sender master data.
Settling accrued costs
If you want to settle accrued costs for this sender, any settlement
already made must be reversed in full. Then settle the reversed
periods once more, before settling the current settlement period.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KD283 - WIP/cost of sales can only be settled after reversal ?

  The SAP error message KD283, which states "WIP/cost of sales can only be settled after reversal," typically occurs in the context of Work in Progress (WIP) and Cost of Sales (CoS) settlements in SAP Controlling (CO) module. This error indicates that there is an issue with the settlement process for WIP or CoS, often related to the status of the associated production orders or projects.
  Cause:
  
  
  Incomplete Reversal: The error usually arises when there is an attempt to settle WIP or CoS for a production order or project that has not been fully reversed. This could mean that there are still some transactions or postings that need to be reversed before the settlement can proceed.
  
  
  Incorrect Order Status: The production order or project may be in a status that does not allow for settlement. For example, if the order is still open or has not been fully closed, the system will prevent settlement.
  
  
  Missing or Incorrect Configuration: There may be configuration issues in the controlling area or the order type that prevent the settlement from being processed correctly.
  
  
  Pending Transactions: There might be pending transactions that need to be cleared before the settlement can occur.
  
  
  Solution:
  
  
  Check Order Status: Verify the status of the production order or project. Ensure that it is in a status that allows for settlement (e.g., closed or technically completed).
  
  
  Reversal of Transactions: If there are any transactions that need to be reversed, perform the necessary reversals. This may involve reversing goods movements, invoices, or other postings related to the order.
  
  
  Review WIP and CoS: Check the WIP and Cost of Sales accounts to ensure that all necessary postings have been made and that there are no discrepancies.
  
  
  Configuration Review: Review the configuration settings for the controlling area and the order type to ensure that they are set up correctly for settlement.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling WIP and CoS settlements.
  
  
  Transaction Codes: Use relevant transaction codes such as:
  
  KKS1: For WIP calculation
  KKAO: For settlement of orders
  KSV5: To check the status of the orders
  
  
  
  Consult with SAP Support: If the issue persists, consider reaching out to SAP support or your internal SAP team for further assistance.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  Documentation: Review the SAP Help Portal for detailed information on WIP and CoS settlements.
  Training: Consider training sessions or workshops on SAP CO module functionalities to better understand the settlement processes.
  
  By following these steps, you should be able to identify the root cause of the KD283 error and take appropriate actions to resolve it.