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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message M7305 - Moving average price of & becomes negative ?

  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 issue.
  
  Solutions:
  
  Check Stock Levels: Verify the stock levels for the material in question. Ensure that there are no negative stock levels or that stock movements do not exceed the available stock.
  Review Transactions: Look at the recent transactions related to the material. Check for any goods issues, returns, or adjustments that may have caused the negative price.
  Adjust Valuation: If the moving average price is incorrect, you may need to adjust the valuation of the material. This can be done through transaction codes like MR21 (Change Material Price) to correct the moving average price.
  Material Master Data: Review the material master data for any inconsistencies or errors. Ensure that the valuation class and other relevant fields are correctly set up.
  Consult with Finance: If the issue persists, it may be necessary to consult with the finance team to ensure that all accounting entries are correct and that there are no discrepancies in the financial postings.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as MM03 (Display Material), MM02 (Change Material), and MB51 (Material Document List) to investigate the issue further.
  SAP Notes: Check for any SAP Notes related to this error message, as there may be specific patches or updates that address known issues.
  Documentation: Review SAP documentation on moving average pricing and inventory management to better understand how the system calculates prices and how to troubleshoot related issues.
  
  By following these steps, you should be able to identify the cause of the M7305 error and implement a solution to resolve it.