How To Fix M3406 - The costing lot size must not be smaller than the price unit

SAP Error Message - Details

• Message type: E = Error

• Message class: M3 - Material Master

• Message number: 406

• Message text: The costing lot size must not be smaller than the price unit

What causes this issue?

You have specified a <DS:DE.CK_LOSGR>costing lot size</> that is
smaller than the <DS:DE.PEINH>price unit</>. Since costing is always
based on the costing lot size, this constellation is not allowed since
it could result in rounding problems when determining new prices.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Change the price unit (on either the <LS>Costing</> screen or
<LS>Accounting</> screen as appropriate) and/or costing lot size.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M3406 - The costing lot size must not be smaller than the price unit ?

  The SAP error message M3406, "The costing lot size must not be smaller than the price unit," typically occurs in the context of material master data or when dealing with costing and pricing in SAP. This error indicates that there is a mismatch between the costing lot size and the price unit defined for a material.
  Cause:
  
  Costing Lot Size: The costing lot size is the quantity of material that is used for cost calculations. If this value is set smaller than the price unit, it leads to inconsistencies in how costs are calculated.
  Price Unit: The price unit is the quantity of the material for which the price is defined. If the costing lot size is less than this price unit, it creates a logical conflict, as you cannot cost a quantity that is smaller than the unit for which the price is set.
  Material Master Data: This error often arises from incorrect or inconsistent data in the material master record, particularly in the costing view.
  
  Solution:
  To resolve the error, you can take the following steps:
  
  
  Check Material Master Data:
  
  Go to the material master record (transaction code MM02 for change).
  Navigate to the costing view and check the "Costing Lot Size" field.
  Compare it with the "Price Unit" field in the purchasing or sales view.
  
  
  
  Adjust Costing Lot Size:
  
  If the costing lot size is indeed smaller than the price unit, you will need to adjust the costing lot size to be equal to or greater than the price unit.
  Save the changes to the material master.
  
  
  
  Review Pricing Conditions:
  
  If applicable, check the pricing conditions in the condition records (transaction code VK11 for creating or VK12 for changing).
  Ensure that the pricing conditions are set correctly and correspond to the updated costing lot size.
  
  
  
  Re-run Costing:
  
  After making the necessary adjustments, re-run the costing process to ensure that the error does not occur again.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  MM02: Change Material Master
  MM03: Display Material Master
  CK11N: Create Material Cost Estimate
  CK40N: Change Material Cost Estimate
  
  
  Documentation: Refer to SAP Help documentation for detailed information on material master data and costing procedures.
  User Roles: Ensure that you have the necessary authorizations to make changes to the material master data.
  
  By following these steps, you should be able to resolve the M3406 error and ensure that your costing and pricing data is consistent and accurate.