How To Fix KJ397 - With profit indicator K you must choose loss realization method K

KJ397 - Overview

• Message type: E = Error

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

• Message number: 397

• Message text: With profit indicator K you must choose loss realization method K

What causes this issue?

In the valuation method, you selected profit indicator <ZH>K</> (enter
cost of sales). This method can be used to transfer the data from
resource-related billing or to manually enter the
<DS:GLOS.cost_of_sales>cost of sales</>. You must choose a method of
loss realization that matches this profit indicator.

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?

Go into Customizing and set the indicator for loss realization in the
valuation method to <ZH>K</> (loss realization with cost of sales).

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KJ397 - With profit indicator K you must choose loss realization method K ?

  The SAP error message KJ397 indicates that there is a requirement to select a specific loss realization method when working with profit indicator K in the context of Profitability Analysis (CO-PA). This error typically arises when you are trying to post or process data that involves profit indicator K, but the system requires a specific loss realization method to be defined.
  
  Cause:
  
  Profit Indicator K: This profit indicator is often used for specific types of profitability analysis, and it has certain rules associated with it.
  Loss Realization Method: The system expects a loss realization method to be defined for profit indicator K. If this method is not set up or is incorrectly configured, the error will occur.
  
  Configuration Issues: There may be issues in the configuration settings related to the profit center accounting or profitability analysis that need to be addressed.
  
  
  Solution:
  
  
  Define Loss Realization Method:
  
  Go to the configuration settings in SAP (Transaction code: SPRO).
  Navigate to