How To Fix M0005 - Moving average price of & becomes negative

SAP Error Message - Details

• Message type: E = Error

• Message class: M0 - SAPFM00G Error Messages

• Message number: 005

• Message text: Moving average price of & becomes negative

What causes this issue?

As a result of your action, the quantity and value for material &V1&
have been changed so much that the moving average price is now negative.
&SYSTEM RESPONSE&
The system does not allow a negative moving average price.

How to fix this error?

Check which postings have been made in the past for this material; you
might have to cancel an incorrectly valuated goods receipt or an
incorrectly posted invoice, before you can carry out your posting.

Error message extract from SAP system. Copyright SAP SE.

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• What is the cause and solution for SAP error message M0005 - Moving average price of & becomes negative ?

  The SAP error message M0005, which states "Moving average price of & becomes negative," typically occurs in the context of inventory management and material valuation. This error indicates that the moving average price (MAP) of a material is being calculated to a negative value, which is not permissible in SAP.
  Cause:
  The error can be triggered by several factors, including:
  
  
  Inventory Adjustments: If there are inventory adjustments (such as goods issues or returns) that reduce the quantity of a material to a point where the total value of the inventory becomes negative, this can lead to a negative moving average price.
  
  
  Incorrect Valuation: If the valuation of the material is incorrectly set up or if there are discrepancies in the valuation data, it can lead to negative pricing.
  
  
  Goods Movements: Posting goods movements (like goods issues) without a corresponding value can also cause the moving average price to drop below zero.
  
  
  Negative Stock: If the system allows negative stock levels and there are transactions that lead to a negative stock situation, this can affect the moving average price.
  
  
  Solution:
  To resolve the M0005 error, consider the following steps:
  
  
  Check Material Master Data: Review the material master data for the affected material. Ensure that the valuation class and price control indicators are correctly set.
  
  
  Review Inventory Levels: Check the current inventory levels and the associated values. Use transaction codes like MMBE (Stock Overview) to see the stock situation.
  
  
  Analyze Recent Transactions: Look at recent goods movements for the material using transaction codes like MB51 (Material Document List) to identify any transactions that may have caused the issue.
  
  
  Adjust Inventory: If necessary, perform inventory adjustments to correct any discrepancies. This may involve posting a stock adjustment or correcting any erroneous transactions.
  
  
  Check for Negative Stock: If negative stock is allowed in your configuration, consider whether this is appropriate for your business processes. If not, you may want to restrict negative stock.
  
  
  Recalculate Moving Average Price: After correcting any issues, you may need to recalculate the moving average price. This can be done by posting a goods receipt or adjusting the stock.
  
  
  Consult SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as MMBE, MB51, MB1A, MB1B, and MB1C for inventory management and goods movements.
  SAP Documentation: Review SAP documentation related to material valuation and moving average pricing for a deeper understanding of how these processes work.
  User Roles: Ensure that users have the appropriate roles and authorizations to perform inventory adjustments and manage material master data.
  
  By following these steps, you should be able to identify the root cause of the M0005 error and implement a solution to prevent it from occurring in the future.