How To Fix MY118 - Negative FIFO price for material &1 &2

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 118

• Message text: Negative FIFO price for material &1 &2

What causes this issue?

The system has calculated a negative FIFO price for material &V1& &V2&.
This result is not allowed.

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?

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 MY118 - Negative FIFO price for material &1 &2 ?

  The SAP error message MY118 "Negative FIFO price for material &1 &2" typically occurs in the context of inventory management and valuation, particularly when using the FIFO (First In, First Out) method for inventory valuation. This error indicates that the system has encountered a situation where the FIFO price for a material has become negative, which is not allowed.
  Causes:
  
  Incorrect Inventory Transactions: If there are incorrect postings or adjustments made to inventory, such as returns, adjustments, or incorrect goods movements, it can lead to negative FIFO prices.
  Price Changes: If the price of a material is changed after goods have been issued or consumed, it can lead to inconsistencies in the FIFO valuation.
  Stock Transfers: Issues during stock transfers between different storage locations or plants can also result in negative FIFO prices.
  Negative Stock: If the system allows negative stock levels, it can lead to situations where the FIFO price calculation results in a negative value.
  Configuration Issues: Incorrect configuration in the material master or valuation settings can also lead to this error.
  
  Solutions:
  
  Review Inventory Transactions: Check the recent inventory transactions for the affected material. Look for any incorrect postings or adjustments that may have led to the negative FIFO price.
  Correct Price Changes: Ensure that any price changes are properly reflected in the system and that they do not conflict with existing inventory values.
  Adjust Stock Levels: If negative stock levels are present, consider adjusting the stock levels to ensure that they are accurate and reflect the actual inventory.
  Re-evaluate FIFO Valuation: You may need to re-evaluate the FIFO valuation for the affected material. This can involve running a report to analyze the FIFO price history and making necessary adjustments.
  Consult Configuration Settings: Review the configuration settings in the material master and valuation settings to ensure they are set up correctly for FIFO valuation.
  Use Transaction Codes: Utilize transaction codes such as MB51 (Material Document List) or MB5B (Stock on Posting Date) to analyze the stock movements and identify the root cause of the issue.
  
  Related Information:
  
  Material Master Data: Ensure that the material master data is correctly maintained, including valuation class and price control indicators.
  Inventory Valuation Methods: Understand the different inventory valuation methods available in SAP (e.g., FIFO, LIFO, moving average) and how they impact financial reporting.
  SAP Notes: Check for any relevant SAP Notes or updates that may address known issues related to FIFO pricing and inventory management.
  Consult SAP Documentation: Refer to SAP documentation for detailed guidance on inventory management and valuation methods.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in inventory management.