How To Fix KJ286 - The profit percentage is too high

SAP Error Message - Details

• Message type: E = Error

• Message class: KJ - Cost Object Controlling for Make-to-Order Production

• Message number: 286

• Message text: The profit percentage is too high

What causes this issue?

The profit percentage is the result of the following formula:
(Planned revenue - Planned costs) * 100 / Planned costs
The result of this formula exceeds the maximum permitted size of the
currency fields.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Check the planned costs and the planned revenues of the object to be
processed. The ratio of the planned revenue to the planned costs may be
too high.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KJ286 - The profit percentage is too high ?

  The SAP error message KJ286, which states "The profit percentage is too high," typically occurs in the context of sales order processing, particularly when dealing with pricing and profitability analysis in SAP. This error indicates that the profit margin for a particular sales order or item exceeds the predefined limits set in the system.
  Cause:
  
  Profitability Analysis Settings: The system has thresholds for acceptable profit margins, and the calculated profit percentage for the transaction exceeds these limits.
  Pricing Conditions: The pricing conditions applied to the sales order may lead to an unusually high profit margin, possibly due to incorrect pricing or discounts.
  Cost Estimates: The cost estimates for the materials or services involved may be outdated or incorrectly configured, leading to inflated profit margins.
  Sales Order Configuration: Specific configurations in the sales order or customer master data may enforce profit margin limits.
  
  Solution:
  
  Review Profitability Settings: Check the profitability analysis settings in the system to understand the thresholds set for profit margins. Adjust these settings if necessary, but ensure that any changes align with business policies.
  Analyze Pricing Conditions: Review the pricing conditions applied to the sales order. Ensure that the prices, discounts, and surcharges are correctly configured and reflect the intended pricing strategy.
  Update Cost Estimates: Verify that the cost estimates for the products or services are accurate and up to date. If necessary, recalculate or update the cost estimates in the system.
  Check Sales Order Details: Review the sales order for any anomalies or errors in the configuration that might lead to an inflated profit percentage. This includes checking the item details, customer pricing agreements, and any special conditions.
  Consult with Finance/Controlling: If the issue persists, consult with the finance or controlling department to ensure that the profit margin thresholds are appropriate and reflect the company's financial strategy.
  
  Related Information:
  
  SAP Documentation: Refer to SAP's official documentation for detailed information on profitability analysis and pricing conditions.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as VA01 (Create Sales Order), VA02 (Change Sales Order), and KE30 (Profitability Report) to analyze and troubleshoot the issue.
  User Exits and Enhancements: In some cases, custom user exits or enhancements may be implemented that affect profit margin calculations. Review any custom code that may impact pricing or profitability.
  
  By following these steps, you should be able to identify the root cause of the KJ286 error and implement the necessary changes to resolve it.