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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message KJ821 - WIP at target cost only possible with Product Cost by Period ?

  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 method from "Product Cost by Order" to "Product Cost by Period." This can be done in the configuration settings of the controlling area.
  Navigate to the configuration path: Controlling > Product Cost Controlling > Product Cost Planning > Costing Variants and adjust the settings accordingly.
  
  
  
  Use Actual Costs:
  
  If changing the costing method is not feasible, consider using actual costs instead of target costs for WIP calculations. This may involve adjusting your costing variant settings to ensure that actual costs are used.
  
  
  
  Review Material Master Settings:
  
  Check the material master data for the relevant materials to ensure that the costing type and valuation class are set correctly. This can be done in the material master (transaction MM02).
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific configuration settings that may need to be adjusted based on your organization's requirements.
  
  
  
  Related Information:
  
  WIP Calculation: Work in Progress is a critical component in manufacturing and project accounting, as it represents the costs incurred for products that are in production but not yet completed.
  Costing Variants: Costing variants define how costs are calculated and can include settings for target costs, actual costs, and other parameters.
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates related to this error message.
  
  By following these steps, you should be able to resolve the KJ821 error and ensure that your WIP calculations are performed correctly in SAP.