How To Fix MG020 - First define the valuation level in Customizing

SAP Error Message - Details

• Message type: E = Error

• Message class: MG - Batch input: material master

• Message number: 020

• Message text: First define the valuation level in Customizing

What causes this issue?

You wanted to transfer material master data to your system, for
example, by direct input. However, you have not yet defined the
valuation level in Customizing.

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?

Ask your system administrator to define the valuation level in
Customizing for <LS>Enterprise Structure</> in the activity
<DS:SIMG.SIMG_CFMENUSAPCOX14>Define valuation level</>.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MG020 - First define the valuation level in Customizing ?

  The SAP error message MG020, which states "First define the valuation level in Customizing," typically occurs when the system is unable to determine the valuation level for materials in the context of inventory management and valuation. This error is related to the configuration settings in the SAP system, specifically in the Material Management (MM) module.
  Cause:
  The error arises when the valuation level for materials has not been defined in the system. The valuation level determines whether the valuation of materials is done at the plant level or at the company code level. If this setting is not configured, the system cannot proceed with operations that require valuation information.
  Solution:
  To resolve the MG020 error, you need to define the valuation level in the SAP Customizing settings. Here are the steps to do this:
  
  
  Access Customizing:
  
  Go to the SAP Easy Access screen.
  Navigate to SPRO (SAP Project Reference Object) and select "SAP Reference IMG."
  
  
  
  Define Valuation Level:
  
  Follow the path: Materials Management -> General Settings -> Valuation -> Define Valuation Level.
  Here, you will find options to set the valuation level. You can choose between:
  
  Valuation at Plant Level: This means that the valuation of materials is done at the plant level.
  Valuation at Company Code Level: This means that the valuation is done at the company code level.
  
  
  
  
  
  Select the Appropriate Option:
  
  Choose the appropriate valuation level based on your organization's requirements and click on the "Save" button to apply the changes.
  
  
  
  Check Material Master Data:
  
  After defining the valuation level, ensure that the material master data is correctly set up according to the new valuation level.
  
  
  
  Test the Configuration:
  
  Perform the transaction that previously resulted in the error to confirm that the issue has been resolved.
  
  
  
  Related Information:
  
  Material Master Data: Ensure that the material master records are correctly maintained, as they are crucial for inventory valuation.
  Valuation Classes: Understand how valuation classes are linked to the valuation level, as they determine how materials are grouped for valuation purposes.
  Integration with Financial Accounting: The valuation level impacts how inventory values are reflected in financial accounting, so ensure that the settings align with your financial reporting requirements.
  Documentation: Refer to SAP documentation or help files for more detailed information on valuation levels and their implications in the MM module.
  
  By following these steps, you should be able to resolve the MG020 error and ensure that your SAP system is correctly configured for material valuation.