How To Fix KJ420 - Only use if profit indicator is not set to percentage of completion

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 420

• Message text: Only use if profit indicator is not set to percentage of completion

What causes this issue?

The <LS>profit indicator</> for <DS:GLOS.results_analysis>results
analysis</> determines whether results analysis is performed on the
object using the <GL:POC_method>POC method</>.
The <DS:GLOS.results_analysis_data>results analysis data</> you entered
<ZH>cannot</> be used by the system if you perform results analysis
using this method. This is data such as:
<GL:capitalized_costs>Capitalized costs</>
<GL:capitalized_profit>Capitalized profit</>
<GL:reserves_for_unrealized_costs>Reserves for unrealized costs</>

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 your entries.
If necessary, choose a different <DS:DE.ABGR_ABGTY>results analysis
form</>.
If you don't want to carry out results analysis using the POC method,
notify your system administrator.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KJ420 - Only use if profit indicator is not set to percentage of completion ?

  The SAP error message KJ420, which states "Only use if profit indicator is not set to percentage of completion," typically occurs in the context of project accounting or internal orders when there is a mismatch in the configuration of profit indicators and the method of revenue recognition.
  Cause:
  The error arises when you attempt to use a profit indicator that is not compatible with the percentage of completion (PoC) method. The PoC method is used for recognizing revenue based on the progress of a project, and it requires specific settings in the profit indicator. If the profit indicator is set to a method that does not align with PoC, this error will be triggered.
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Profit Indicator Settings:
  
  Navigate to the configuration settings for the profit indicator in your SAP system.
  Ensure that the profit indicator you are using is compatible with the percentage of completion method. If it is not, you may need to change the profit indicator to one that is compatible.
  
  
  
  Adjust Project Settings:
  
  Review the settings of the project or internal order where the error occurred.
  Ensure that the revenue recognition method is set correctly to align with the profit indicator being used.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for detailed information on profit indicators and their compatibility with different revenue recognition methods.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to ensure that the error no longer occurs and that the revenue recognition is processed correctly.
  
  
  
  Consult with SAP Support:
  
  If you are unable to resolve the issue, consider reaching out to SAP support or your internal SAP team for further assistance.
  
  
  
  Related Information:
  
  Profit Indicators: These are used in project accounting to determine how profit is calculated and recognized. Different indicators may be used for different types of projects or orders.
  Percentage of Completion Method: This is a common method for recognizing revenue in long-term projects, where revenue is recognized based on the completion percentage of the project.
  Configuration Transactions: You may need to access specific configuration transactions in SAP (such as ODP1 for profit indicators) to make the necessary adjustments.
  
  By following these steps, you should be able to address the KJ420 error and ensure that your project accounting processes function smoothly.