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

M0005 - Overview

• 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.

Smart SAP Assistant

• 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