How To Fix OM465 - Negative stocks allowed in val. area &1 => ML cannot be activated

SAP Error Message - Details

• Message type: E = Error

• Message class: OM - Customizing Materialwirtschaft

• Message number: 465

• Message text: Negative stocks allowed in val. area &1 => ML cannot be activated

What causes this issue?

In Customizing of Inventory Management, you have configured valuation
area &v1& so that negative stocks are allowed. Unfortunately this
setting is not supported by the material ledger.

System Response

The system does not allow the material ledger to be activated.

How to fix this error?

You have the following alternatives:
If you require negative stocks, you can choose to work without the
material ledger.
If you require the material ledger, you can switch off negative stocks
for valuation areas &v1& in the Customizing system of Inventory
Management and then try again to activate the material ledger.


Contact your system administrator.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message OM465 - Negative stocks allowed in val. area &1 => ML cannot be activated ?

  The SAP error message OM465 indicates that negative stocks are allowed in a valuation area, but the Material Ledger (ML) cannot be activated due to this setting. This situation typically arises when the system is configured to allow negative stock levels, which is incompatible with the Material Ledger functionality.
  Cause:
  
  Negative Stock Configuration: The valuation area (which can be a plant or company code) is configured to allow negative stock levels. This means that the system permits inventory levels to go below zero.
  Material Ledger Activation: The Material Ledger requires that stock levels be managed in a way that does not allow negative quantities, as it relies on accurate inventory valuation and tracking.
  
  Solution:
  To resolve this error, you need to either change the configuration to disallow negative stocks or ensure that the Material Ledger is not activated for the valuation area in question. Here are the steps you can take:
  
  
  Disallow Negative Stocks:
  
  Go to the configuration settings in SAP.
  Navigate to the path: Logistics > General > Material Master > Settings for Key Fields > Define Negative Stock.
  Change the settings to disallow negative stocks for the relevant valuation area.
  
  
  
  Deactivate Material Ledger:
  
  If you do not need the Material Ledger functionality, you can choose to deactivate it for the valuation area.
  This can be done in the configuration settings under Financial Accounting > General Ledger > Material Ledger > Activate Material Ledger. Ensure that the Material Ledger is not activated for the valuation area.
  
  
  
  Check Material Master Settings:
  
  Review the material master records for the materials in the affected valuation area to ensure that they are set up correctly and do not conflict with the Material Ledger requirements.
  
  
  
  Consult Documentation: 
  
  Review SAP documentation or consult with your SAP support team for specific guidance related to your system version and configuration.
  
  
  
  Related Information:
  
  Material Ledger: The Material Ledger is a tool in SAP that allows for the management of inventory valuation and provides functionalities such as actual costing.
  Valuation Area: This is typically a plant or company code in SAP where inventory is managed and valued.
  Negative Stock: This refers to a situation where the inventory level of a material can go below zero, which can occur due to various reasons such as sales orders, returns, or adjustments.
  
  By addressing the configuration settings as outlined above, you should be able to resolve the OM465 error and successfully activate the Material Ledger if needed.