How To Fix M0003 - Moving average price & becomes unrealistic: &

SAP Error Message - Details

• Message type: E = Error

• Message class: M0 - SAPFM00G Error Messages

• Message number: 003

• Message text: Moving average price & becomes unrealistic: &

What causes this issue?

As a result of your action, the quantity and value of material &V1& have
been changed so much that the moving average price is now unrealistic.

How to fix this error?

Check the quantity and value.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M0003 - Moving average price & becomes unrealistic: & ?

  The SAP error message M0003, which states "Moving average price & becomes unrealistic: &," typically occurs in the context of inventory management and material valuation. This error indicates that the moving average price (MAP) of a material has become unrealistic due to a significant discrepancy between the current price and the historical prices recorded in the system.
  Causes:
  
  Large Purchase Orders: A large purchase order at a significantly different price can skew the moving average price.
  Manual Price Changes: If a user manually changes the price of a material, it can lead to unrealistic values in the moving average price.
  Inventory Adjustments: Adjustments made to inventory levels (e.g., stock transfers, write-offs) can affect the moving average price.
  Currency Fluctuations: If the material is procured in a foreign currency, fluctuations in exchange rates can impact the moving average price.
  Incorrect Valuation Class: If the material is assigned to an incorrect valuation class, it may lead to incorrect price calculations.
  
  Solutions:
  
  Review Recent Transactions: Check recent purchase orders and inventory transactions for any anomalies that could have caused the unrealistic price.
  Adjust Moving Average Price: If the price is indeed unrealistic, you may need to adjust the moving average price manually using transaction code MR21 (Change Material Price).
  Check for Manual Price Changes: Investigate if there were any manual price changes that could have led to this issue and revert them if necessary.
  Analyze Inventory Adjustments: Review any inventory adjustments that have been made recently to ensure they were executed correctly.
  Consult with Finance: If currency fluctuations are involved, consult with the finance team to understand the impact on pricing.
  Use Price Control: Consider using standard price control instead of moving average price if the material pricing is highly volatile.
  
  Related Information:
  
  Transaction Codes: 
  
  MM03: Display Material
  MM02: Change Material
  MR21: Change Material Price
  
  
  Material Master Data: Ensure that the material master data is correctly maintained, including valuation class and price control indicators.
  SAP Notes: Check SAP Notes for any known issues or patches related to moving average price calculations.
  Documentation: Review SAP documentation on moving average pricing and inventory management for best practices.
  
  By addressing the underlying causes and following the suggested solutions, you can resolve the M0003 error and maintain accurate material pricing in your SAP system.