How To Fix MY003 - The newly determined price for material & & & is too high

SAP Error Message - Details

• Message type: E = Error

• Message class: MY - Messages for Balance Sheet Valuation(Low.Val.Det./LIFO/FIFO)

• Message number: 003

• Message text: The newly determined price for material & & & is too high

What causes this issue?

For material <(>&<)>V1& <(>&<)>V2& <(>&<)>V3&, the system determined a
new price that is higher than the field definition for the physical
inventory prices in the material master records allows.

System Response

The material is removed from further processing.

How to fix this error?

Make sure that there is an appropriate value in the price unit in the
Accounting 2 view of the material master record.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message MY003 - The newly determined price for material & & & is too high ?

  The SAP error message MY003, which states "The newly determined price for material & & & is too high," typically occurs during the pricing process in SAP, particularly in the context of Material Management (MM) or Controlling (CO) modules. This error indicates that the system has calculated a new price for a material that exceeds a predefined threshold or limit.
  Causes:
  
  Price Control Settings: The material may have a price control setting (e.g., moving average price or standard price) that is being violated by the new price calculation.
  Price Variance: The new price might be significantly higher than the previous price, which could trigger a warning or error based on company policy or system configuration.
  Configuration Settings: There may be specific configuration settings in the system that define acceptable price ranges for materials.
  Currency Fluctuations: If the material is priced in a foreign currency, fluctuations in exchange rates could lead to a higher price.
  Costing Variances: Changes in the cost structure, such as increased raw material costs or labor costs, could lead to a higher price determination.
  
  Solutions:
  
  Review Material Master Data: Check the material master data for the affected material to ensure that the price control settings are appropriate and that the current price is correctly maintained.
  Adjust Price Control Settings: If necessary, adjust the price control settings in the material master to allow for higher prices, if justified.
  Check Configuration Settings: Review the configuration settings in the SAP system related to pricing and ensure that they align with the company's pricing policies.
  Analyze Cost Components: Investigate the cost components that contribute to the material price and determine if there are any discrepancies or errors that need to be corrected.
  Consult with Finance/Controlling Team: If the price increase is legitimate, consult with the finance or controlling team to understand if the new price can be approved or if there are any additional steps required to process the change.
  Use Transaction Codes: Utilize relevant transaction codes (e.g., MM02 for material master changes, CK11N for cost estimates) to make necessary adjustments.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with transaction codes like MM02 (Change Material), ME21N (Create Purchase Order), and CK11N (Create Cost Estimate) for managing material pricing.
  Documentation: Refer to SAP documentation or help files for detailed explanations of pricing procedures and error messages.
  User Exits and BAdIs: If the pricing logic needs customization, consider using user exits or Business Add-Ins (BAdIs) to implement specific business rules.
  SAP Notes: Check SAP Notes for any known issues or patches related to pricing errors that may provide additional insights or solutions.
  
  By following these steps, you should be able to identify the cause of the MY003 error and implement a suitable solution.