M8786 - Price change more than & % in previous year for material &

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 786

• Message text: Price change more than & % in previous year for material &

DEFINE &A& = 'Valuation type:'.

What causes this issue?

When you post the document, a posting is made to the stock account. This
results in a large price variance in the previous year.

How to fix this error?

Check the amounts and quantities in the material item and correct them
if necessary.
Material: &V2&
Valuation area: &V3&
&A& &V4&

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message M8786 - Price change more than & % in previous year for material & ?

  The SAP error message M8786 indicates that there has been a price change for a material that exceeds a specified percentage compared to the price in the previous year. This message is typically encountered during the processing of purchasing documents, such as purchase orders or purchase requisitions, and is part of the system's controls to prevent significant price fluctuations that could impact budgeting and financial planning.
  Cause:
  
  Significant Price Increase: The price of the material has increased by more than the allowed percentage compared to the previous year's price.
  Configuration Settings: The percentage threshold for price changes is defined in the system settings, and the current price change exceeds this threshold.
  Data Entry Error: There may be an error in the data entry of the new price, leading to an unexpected increase.
  
  Solution:
  
  Review Price Change: Check the new price being entered and compare it with the previous year's price to confirm if the increase is valid.
  Adjust Configuration: If the price change is justified, you may need to adjust the configuration settings in SAP to allow for a higher percentage increase. This can be done by:
  
  Navigating to the relevant configuration settings in the SAP system (usually in the SPRO transaction).
  Adjusting the percentage threshold for price changes.
  
  
  Approval Process: If the price change is significant, it may require additional approval from management or the procurement department.
  Correct Data Entry: If the price was entered incorrectly, correct the price in the purchasing document.
  Consult with Procurement: Discuss with the procurement team to understand the reason for the price increase and whether it aligns with market trends or supplier negotiations.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like ME21N (Create Purchase Order), ME22N (Change Purchase Order), or ME23N (Display Purchase Order) to review and modify purchase orders.
  Material Master Data: Check the material master data (transaction code MM03) to ensure that the pricing information is accurate and up to date.
  Price History: Review the price history of the material to understand past price trends and validate the current price change.
  Documentation: Ensure that there is proper documentation for the price change, especially if it exceeds the threshold, to maintain compliance and transparency.
  
  By following these steps, you should be able to address the M8786 error and proceed with the necessary purchasing activities.