How To Fix KM743 - An invalid profit center is assigned to material &1 in plant &2

SAP Error Message - Details

• Message type: E = Error

• Message class: KM - Error messages for Profit Center Accounting

• Message number: 743

• Message text: An invalid profit center is assigned to material &1 in plant &2

What causes this issue?

Profit center &V3& is assigned to material &V1& in plant &V2&. This
profit center is not valid in the transfer period.

System Response

The balance for material &V1& in plant &V2& is transferred to the dummy
profit center

How to fix this error?

Change the assignment in the material master or extend the validity of
this profit center.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KM743 - An invalid profit center is assigned to material &1 in plant &2 ?

  The SAP error message KM743 indicates that there is an issue with the assignment of a profit center to a material in a specific plant. This error typically arises when the system cannot find a valid profit center for the material in the specified plant, which is necessary for various financial and controlling processes.
  Cause:
  
  Missing Profit Center Assignment: The material may not have a profit center assigned in the material master data.
  Incorrect Profit Center: The profit center assigned to the material may not be valid or may not exist in the system.
  Plant-Specific Settings: The profit center may not be valid for the specific plant where the material is being used.
  Master Data Issues: There could be inconsistencies or errors in the master data related to the material or profit center.
  
  Solution:
  
  
  Check Material Master Data:
  
  Go to the material master record (transaction code MM03) and check the accounting view for the material in the specified plant.
  Ensure that a valid profit center is assigned.
  
  
  
  Verify Profit Center:
  
  Check if the profit center assigned to the material exists and is active in the system.
  Use transaction code KE51 to check the profit center master data.
  
  
  
  Update Profit Center:
  
  If the profit center is missing or incorrect, update the material master with the correct profit center using transaction code MM02.
  
  
  
  Check Plant Settings:
  
  Ensure that the profit center is valid for the specific plant. You can check this in the controlling area settings.
  
  
  
  Consult with Finance Team:
  
  If you are unsure about the correct profit center to assign, consult with your finance or controlling team to ensure compliance with accounting practices.
  
  
  
  Run Consistency Checks:
  
  Use transaction codes like CKMLCP (for material ledger) to run consistency checks and identify any discrepancies in master data.
  
  
  
  Related Information:
  
  
  Transaction Codes:
  
  MM03: Display Material Master
  MM02: Change Material Master
  KE51: Create Profit Center
  CKMLCP: Material Ledger Consistency Check
  
  
  
  Documentation: Refer to SAP Help documentation for detailed information on material master data and profit center accounting.
  
  
  User Roles: Ensure that you have the necessary authorizations to view and edit material master data and profit center information.
  
  
  By following these steps, you should be able to resolve the KM743 error and ensure that the material has a valid profit center assigned in the specified plant.