How To Fix KQ228 - Cost object hierarchy only allows periodic variance calculation

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 228

• Message text: Cost object hierarchy only allows periodic variance calculation

What causes this issue?

You created a <DS:GLOS.variance_key>variance key</> for a
<DS:GLOS.cost_object_hierarchy>cost object hierarchy</>. The system
calculates the variances for a cost object hierarchy at the end of each
posting period. You cannot set the <LS>Cumulative</> indicator in this
case.

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?

Set the <LS>Periodic</> indicator.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KQ228 - Cost object hierarchy only allows periodic variance calculation ?

  The SAP error message KQ228, which states "Cost object hierarchy only allows periodic variance calculation," typically occurs in the context of controlling and cost accounting within SAP. This error is related to the way variance calculations are handled for cost objects, particularly when using cost object hierarchies.
  Cause:
  The error arises when you attempt to perform a variance calculation on a cost object hierarchy that is not set up to allow such calculations. In SAP, cost object hierarchies can be configured to allow either periodic or real-time variance calculations. If the hierarchy is set to allow only periodic variance calculations, any attempt to perform a real-time variance calculation will trigger this error.
  Solution:
  To resolve the KQ228 error, you can take the following steps:
  
  
  Check Cost Object Hierarchy Settings:
  
  Navigate to the configuration settings for the cost object hierarchy in SAP.
  Verify whether the hierarchy is set to allow periodic variance calculations only. This can typically be found in the controlling (CO) module settings.
  
  
  
  Adjust Variance Calculation Type:
  
  If you need to perform a real-time variance calculation, you may need to change the settings of the cost object hierarchy to allow for real-time calculations. This may involve adjusting the configuration in the controlling area or the specific cost object hierarchy.
  
  
  
  Use Periodic Variance Calculation:
  
  If changing the settings is not feasible or if you prefer to keep the current configuration, you can opt to perform a periodic variance calculation instead. This means you will need to run the variance calculation at the end of a period (e.g., monthly or quarterly) rather than in real-time.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources related to cost object hierarchies and variance calculations for more detailed guidance on configuration and best practices.
  
  
  
  Engage with SAP Support:
  
  If you are unable to resolve the issue through configuration changes, consider reaching out to SAP support for assistance. They can provide insights specific to your system setup and help troubleshoot the issue further.
  
  
  
  Related Information:
  
  Cost Object Hierarchies: These are structures in SAP that allow for the grouping of cost objects for reporting and analysis purposes. They can be configured to support different types of variance calculations.
  Variance Calculation Types: Variance calculations can be performed in real-time or periodically, depending on the configuration of the cost object hierarchy and the requirements of the organization.
  SAP Modules: This error is primarily related to the Controlling (CO) module in SAP, which deals with internal cost tracking and management.
  
  By following these steps, you should be able to address the KQ228 error and ensure that your variance calculations are performed correctly according to your organization's requirements.