How To Fix KZ026 - Variance key & differs from that of the higher-level cost object

SAP Error Message - Details

• Message type: E = Error

• Message class: KZ - Cost Object Repetitive Mfg / Process Mfg

• Message number: 026

• Message text: Variance key & differs from that of the higher-level cost object

What causes this issue?

You entered a variance key which differs from that of the higher-level
cost object ID.
All cost object IDs in a cost object hierarchy must have the same
variance key.

How to fix this error?

Delete your entry, and the system will use the variance key of the
higher-level cost object.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KZ026 - Variance key & differs from that of the higher-level cost object ?

  The SAP error message KZ026 indicates that there is a discrepancy between the variance key assigned to a lower-level cost object and the variance key assigned to its higher-level cost object. This typically occurs in the context of controlling and cost accounting, particularly when dealing with cost centers, internal orders, or projects.
  Cause:
  
  Inconsistent Variance Keys: The lower-level cost object (e.g., a cost center or internal order) has a different variance key than its parent cost object. Variance keys are used to determine how variances are calculated and reported.
  Configuration Issues: There may be a configuration issue in the controlling area settings or in the assignment of variance keys to cost objects.
  Data Entry Errors: Manual entry errors during the creation or modification of cost objects can lead to mismatched variance keys.
  
  Solution:
  
  
  Check Variance Key Assignments:
  
  Navigate to the configuration settings for the relevant cost objects in SAP.
  Verify that the variance key assigned to the lower-level cost object matches that of the higher-level cost object.
  
  
  
  Adjust Variance Keys:
  
  If a mismatch is found, update the variance key of the lower-level cost object to match the higher-level cost object.
  This can typically be done in the master data of the cost object (e.g., cost center master data).
  
  
  
  Review Configuration Settings:
  
  Ensure that the variance keys are correctly configured in the controlling area settings.
  Check if there are any specific rules or settings that might be causing the discrepancy.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for detailed guidance on variance keys and their configuration.
  
  
  
  Testing:
  
  After making changes, perform tests to ensure that the error does not reoccur and that variances are calculated correctly.
  
  
  
  Related Information:
  
  Variance Keys: These are used in SAP to determine how variances are calculated for cost objects. They can define different methods for calculating variances based on the type of cost object.
  Cost Object Hierarchy: Understanding the hierarchy of cost objects is crucial, as the variance key should be consistent throughout the hierarchy to ensure accurate reporting and analysis.
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  KS01: Create Cost Center
  KS02: Change Cost Center
  KSB1: Report: Actual Line Items for Cost Centers
  
  
  SAP Notes: Check for any SAP Notes related to this error message for additional insights or patches that may address known issues.
  
  By following these steps, you should be able to resolve the KZ026 error and ensure that your cost accounting processes function smoothly.