How To Fix KQ165 - Cost element category not suitable

SAP Error Message - Details

• Message type: E = Error

• Message class: KQ - Error Messages for Customizing Product Costing

• Message number: 165

• Message text: Cost element category not suitable

What causes this issue?

The selected cost element is not from cost element category 21
(Internal settlement) or 31 (Results analysis for orders/projects).

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?

Select a suitable cost element.

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 KQ165 - Cost element category not suitable ?

  The SAP error message KQ165, which states "Cost element category not suitable," typically occurs when there is an issue with the configuration of cost elements in the SAP system. This error is often encountered in the context of controlling (CO) and financial accounting (FI) modules when trying to post costs or allocate costs to cost centers, internal orders, or other controlling objects.
  Cause:
  The error is usually caused by one of the following reasons:
  
  
  Incorrect Cost Element Category: The cost element being used is not assigned to the appropriate category that allows it to be used in the context of the transaction you are trying to perform. For example, if you are trying to post a cost to a cost center, the cost element must be of a category that allows such postings.
  
  
  Configuration Issues: The cost element may not be properly configured in the system. This includes not being assigned to the correct controlling area or not being set up to allow postings to the relevant cost objects.
  
  
  Posting Type Mismatch: The type of posting you are trying to perform (e.g., primary vs. secondary cost element) may not match the type of cost element you are using.
  
  
  Solution:
  To resolve the KQ165 error, you can take the following steps:
  
  
  Check Cost Element Configuration:
  
  Go to the transaction code KA03 (Display Cost Element) and check the configuration of the cost element in question.
  Ensure that the cost element is assigned to the correct cost element category (e.g., primary costs, secondary costs).
  
  
  
  Verify Cost Element Category:
  
  Use transaction code OKB2 to check the cost element categories and ensure that the cost element you are using is suitable for the type of posting you are attempting.
  
  
  
  Review Posting Document:
  
  Check the document you are trying to post to ensure that you are using the correct cost element and that it is appropriate for the type of transaction.
  
  
  
  Consult with Configuration Team:
  
  If you are unsure about the configuration or if changes are needed, consult with your SAP configuration team or a functional consultant who specializes in CO and FI modules.
  
  
  
  Testing:
  
  After making any necessary changes, perform a test posting to ensure that the error has been resolved.
  
  
  
  Related Information:
  
  Cost Element Categories: In SAP, cost elements are categorized into primary and secondary cost elements. Primary cost elements are used for costs that originate from financial accounting, while secondary cost elements are used for internal allocations within controlling.
  Transaction Codes:
  
  KA01: Create Cost Element
  KA02: Change Cost Element
  KA03: Display Cost Element
  OKB2: Maintain Cost Element Categories
  
  
  Documentation: Refer to SAP Help documentation for detailed information on cost element configuration and categories.
  
  By following these steps, you should be able to identify the cause of the KQ165 error and implement the necessary changes to resolve it.