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

M3406 - Overview

• 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