How To Fix KZ086 - Business area & not same as that of higher-level cost object

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 086

• Message text: Business area & not same as that of higher-level cost object

What causes this issue?

You entered a business area that is not the same as that of the
higher-level <DS:GLOS.cost_object_ID>cost object ID</>.

System Response

All <DS:GLOS.cost_object_node>cost object nodes</> in a
<DS:GLOS.cost_object_hierarchy>cost object hierarchy</> must be
assigned to the same business area.

How to fix this error?

Delete your entry for the business area. The system will then use the
business area of the higher-level cost object ID.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message KZ086 - Business area & not same as that of higher-level cost object ?

  The SAP error message KZ086 indicates that there is a mismatch between the business area of a cost object and that of its higher-level cost object. This typically occurs in the context of cost accounting when you are trying to post costs to a cost center, internal order, or other cost objects that are linked hierarchically.
  Cause:
  The error arises when:
  
  The business area assigned to a lower-level cost object (like a cost center or internal order) does not match the business area of its higher-level cost object (like a controlling area or another cost center).
  This can happen during postings, allocations, or settlements where the system checks for consistency in business area assignments.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Business Area Assignments:
  
  Verify the business area assigned to both the lower-level and higher-level cost objects. You can do this by navigating to the relevant cost object in SAP and checking its configuration.
  
  
  
  Adjust Business Area:
  
  If the business areas do not match, you will need to either:
  
  Change the business area of the lower-level cost object to match the higher-level cost object.
  Change the business area of the higher-level cost object to match the lower-level cost object, if appropriate.
  
  
  
  
  
  Review Configuration:
  
  Ensure that the configuration settings in the controlling area are set up correctly. This includes checking the settings for business area assignments in the controlling area.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on business area settings and their implications in your organization’s financial structure.
  
  
  
  Test Postings:
  
  After making the necessary adjustments, perform test postings to ensure that the error does not recur.
  
  
  
  Related Information:
  
  Business Area: A business area is an organizational unit that represents a specific area of operations within a company. It is used for internal and external reporting.
  Cost Object: Cost objects are entities to which costs can be assigned, such as cost centers, internal orders, or projects.
  Controlling Area: A controlling area is an organizational unit in SAP that represents a closed system for cost accounting purposes.
  
  Additional Tips:
  
  If you are unsure about making changes to business area assignments, consult with your finance or controlling team to ensure compliance with your organization’s accounting policies.
  Regularly review your cost object hierarchy to prevent similar issues in the future.
  
  By following these steps, you should be able to resolve the KZ086 error and ensure that your cost accounting processes run smoothly.