How To Fix KJ821 - WIP at target cost only possible with Product Cost by Period

KJ821 - Overview

• Message type: E = Error

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

• Message number: 821

• Message text: WIP at target cost only possible with Product Cost by Period

What causes this issue?

You are in Product Cost by Period if the
<DS:GLOS.3526B633AFAB52B9E10000009B38F974>settlement rule</> contains a
periodic distribution rule for settlement to material with a percentage
of greater than 0.
If you are using a <DS:GLOS.3526B6C7AFAB52B9E10000009B38F974>cost
object hierarchy</> without distribution, it is not possible to
calculate WIP for the assigned
<DS:GLOS.3526C3D7AFAB52B9E10000009B38F974>manufacturing orders</> or
<DS:GLOS.3526B6F2AFAB52B9E10000009B38F974>product cost collectors</>
because this is not supported by the settlement function.

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?

Calculate work in process at actual costs or use a cost object
hierarchy with distribution.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

KJ821 - Details

• The SAP error message KJ821 indicates that there is an issue with the Work in Progress (WIP) calculation when using target costs in the context of Product Costing. Specifically, this error arises when you attempt to perform WIP calculations using target costs in a scenario where the system is not configured to allow it, typically when the costing method is set to "Product Cost by Order" instead of "Product Cost by Period."
  
  Cause:
  The error occurs because:
  
  Costing Method: The system is set to use "Product Cost by Order," which does not support WIP calculations based on target costs. Target costs can only be used with "Product Cost by Period."
  Configuration Settings: The configuration settings in the controlling area or the material master may not be aligned with the requirements for using target costs.
  
  
  Solution:
  To resolve the KJ821 error, you can consider the following solutions:
  
  
  Change Costing Method:
  
  If your business process allows it, switch the costing