How To Fix MDG_BS_MAT_MLA_API004 - Change of price or price unit does not fit to inventory value

SAP Error Message - Details

• Message type: E = Error

• Message class: MDG_BS_MAT_MLA_API - Messages for MDG Material Ledger

• Message number: 004

• Message text: Change of price or price unit does not fit to inventory value

Self-Explanatory Message

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• What is the cause and solution for SAP error message MDG_BS_MAT_MLA_API004 - Change of price or price unit does not fit to inventory value ?

  The SAP error message MDG_BS_MAT_MLA_API004 indicates that there is an issue with changing the price or price unit of a material in the Material Master Data Governance (MDG) system. Specifically, this error occurs when the new price or price unit does not align with the existing inventory value of the material. This can happen for several reasons, including discrepancies in valuation methods, inventory valuation, or accounting principles.
  Causes:
  
  Valuation Method Mismatch: The valuation method used for the material (e.g., moving average, standard price) may not support the change in price or price unit.
  Inventory Valuation Issues: The new price or price unit may lead to inconsistencies in the inventory valuation, especially if the material is already in stock.
  Open Purchase Orders: If there are open purchase orders or stock in transit, changing the price or price unit can lead to discrepancies.
  Accounting Principles: The change may violate accounting principles or regulations that require consistency in inventory valuation.
  
  Solutions:
  
  Review Valuation Method: Check the valuation method assigned to the material. If it is set to moving average, ensure that the new price is consistent with the average price calculation.
  Adjust Inventory Values: Before changing the price or price unit, consider adjusting the inventory values to reflect the new pricing.
  Check Open Transactions: Review any open purchase orders, stock in transit, or other transactions that may be affected by the price change. You may need to close or adjust these transactions before proceeding.
  Consult with Finance: Engage with the finance or accounting team to ensure that the proposed changes comply with accounting standards and do not violate any internal policies.
  Use Transaction Codes: Utilize transaction codes like MM02 (Change Material) to make the necessary adjustments, ensuring that all relevant fields are correctly filled out.
  Test in Sandbox: If possible, test the changes in a sandbox environment to see how the system reacts before applying them in the production environment.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any specific patches or updates related to this error message. SAP frequently releases notes that address known issues.
  Documentation: Review SAP documentation on Material Master data management and inventory valuation to understand the implications of changing prices and units.
  Training: Consider training for users involved in material management to ensure they understand the implications of price changes and how to manage them effectively.
  
  By following these steps, you should be able to resolve the error and successfully change the price or price unit for the material in question.