How To Fix KW103 - Allocation relationships include cycles.

SAP Error Message - Details

• Message type: E = Error

• Message class: KW - CO-ABC Activity-Based Costing

• Message number: 103

• Message text: Allocation relationships include cycles.

What causes this issue?

With the explosion of the process structures, the system found
allocation relationships containing loops. The explosion of loops is not
supported within the allocation of process structures, because the
quantities to be allocated are not determined correctly.

System Response

Processing has been terminated.

How to fix this error?

Maintain the process structures so that only hierarchical allocation
relationships are created.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KW103 - Allocation relationships include cycles. ?

  The SAP error message KW103, which states "Allocation relationships include cycles," typically occurs in the context of cost allocation in SAP Controlling (CO) when there are circular references in the allocation relationships. This means that the system has detected a loop in the allocation paths, which prevents it from calculating costs correctly.
  Cause:
  The error is caused by one or more of the following reasons:
  
  Circular Allocation: There are allocation relationships defined in such a way that they create a cycle. For example, if Cost Center A allocates costs to Cost Center B, and Cost Center B allocates costs back to Cost Center A, this creates a cycle.
  Incorrect Configuration: The allocation structure may not be set up correctly, leading to unintended circular references.
  Multiple Allocation Methods: If multiple allocation methods are used, they may inadvertently create cycles.
  
  Solution:
  To resolve the KW103 error, you can take the following steps:
  
  
  Review Allocation Relationships:
  
  Go to the allocation structure in the SAP system and review the allocation relationships.
  Identify any circular references by checking the flow of allocations between cost centers, internal orders, or other objects.
  
  
  
  Modify Allocation Paths:
  
  Adjust the allocation paths to eliminate any cycles. Ensure that each cost center or object only allocates costs in a linear fashion without returning to a previous object.
  
  
  
  Use Trace Tools:
  
  Utilize SAP tools such as the "Trace" function to analyze the allocation paths and identify where the cycles are occurring.
  
  
  
  Test Changes:
  
  After making adjustments, run the allocation process again to ensure that the error is resolved.
  
  
  
  Documentation and Best Practices:
  
  Document the allocation structure and relationships clearly to avoid future cycles.
  Follow best practices for setting up allocation structures, ensuring that they are straightforward and do not create loops.
  
  
  
  Related Information:
  
  Transaction Codes: You may use transaction codes like KSU5 (for direct activity allocation) or KSV5 (for distribution) to review and modify allocation structures.
  SAP Notes: Check SAP Notes for any known issues or additional guidance related to this error message.
  Training and Support: If you are unsure about how to resolve the issue, consider reaching out to your SAP support team or consulting SAP training resources for further assistance.
  
  By following these steps, you should be able to identify and resolve the KW103 error in your SAP system.