How To Fix M7305 - Moving average price of & becomes negative

M7305 - Overview

• Message type: E = Error

• Message class: M7 - Inventory Management and Physical Inventory

• Message number: 305

• Message text: Moving average price of & becomes negative

Due to action taken the quantity and value of material &V1& have been
changed in a way that the moving average price becomes negative.
&SYSTEM RESPONSE&
The system does not accept a negative moving average price.

How to fix this error?

Try to find out which postings have been made for the material in the
past; it might be necessary to reverse an incorrectly valuated goods
receipt or make a reverse entry in respect of a wrongly posted invoice
before you can carry out current posting.
If the future price cannot be explained by normal business processes,
data inconsistencies may exist.
INCLUDE MB_NA_HOTLINE

Error message extract from SAP system. Copyright SAP SE.

M7305 - Details

• The SAP error message M7305, 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 in such a way that it results in a negative value, which is not permissible in SAP.
  Causes:
  
  Negative Stock Movements: If there are stock movements (like goods issues) that exceed the available stock, it can lead to a negative moving average price.
  Incorrect Valuation: If the valuation of the material is incorrectly set up or if there are inconsistencies in the material master data, it can lead to negative prices.
  Incorrect Transactions: Transactions that incorrectly adjust stock levels or prices, such as returns or adjustments, can also lead to this error.
  Manual Adjustments: Manual entries or adjustments to the moving average price that do not align with the actual stock levels can cause this