How To Fix WS475 - The profit is too low (in terms of absolute minimum profit margin &1)

SAP Error Message - Details

• Message type: E = Error

• Message class: WS - Supplier Billing Document

• Message number: 475

• Message text: The profit is too low (in terms of absolute minimum profit margin &1)

Self-Explanatory Message

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• What is the cause and solution for SAP error message WS475 - The profit is too low (in terms of absolute minimum profit margin &1) ?

  SAP Error Message:
  
  WS475 - The profit is too low (in terms of absolute minimum profit margin &1)
  
  Cause:
  This error occurs during sales order processing or pricing when the system detects that the profit margin on the sales document item is below the configured minimum absolute profit margin. The system checks the difference between the sales price and the cost (or target cost) and compares it against a predefined minimum profit margin. If the profit is less than this threshold, the error WS475 is triggered.
  This is typically controlled by pricing procedures or condition techniques that enforce minimum profit margins to avoid selling below cost or at unacceptably low profits.
  
  Explanation:
  
  The system calculates profit as:
  
  Profit = Sales Price - Cost (or Target Cost)  
  The minimum profit margin is defined in customizing (e.g., in condition records, pricing procedures, or via user exits/BAdIs).  
  If the calculated profit is less than the minimum allowed margin (absolute value), the system issues this error.
  
  
  Where is this controlled/configured?
  
  Condition types related to profit or margin checks (e.g., in SD pricing procedures).  
  Minimum profit margin settings in customizing (e.g., in Sales and Distribution ? Basic Functions ? Pricing ? Pricing Control).  
  User exits or BAdIs that implement custom profit margin checks.  
  Costing data (standard cost, target cost) must be maintained correctly for the system to calculate profit properly.
  
  
  Solution:
  
  
  Check the minimum profit margin setting:  
  
  Review the minimum profit margin configured in the system. This might be in condition records or in custom logic.  
  Adjust the minimum profit margin if business requirements allow.
  
  
  
  Review pricing and cost data:  
  
  Verify that the sales price and cost data are correct and up to date.  
  Ensure that the cost used for profit calculation (standard cost, target cost) is maintained properly.
  
  
  
  Adjust sales price or discount:  
  
  Increase the sales price or reduce discounts to ensure the profit margin meets the minimum requirement.
  
  
  
  Override or bypass the check (if allowed):  
  
  In some cases, the check can be overridden by authorized users or via customizing.  
  This should be done cautiously and only if business rules permit.
  
  
  
  Check for custom enhancements:  
  
  If the check is implemented via user exits or BAdIs, review the custom code to understand the logic and adjust if necessary.
  
  
  
  
  Related Information:
  
  
  Transaction codes: VA01 (Create Sales Order), VA02 (Change Sales Order), VA03 (Display Sales Order)  
  
  
  Customizing path:
  
  SPRO ? Sales and Distribution ? Basic Functions ? Pricing ? Pricing Control  
  
  
  User exits/BAdIs:  
  
  USEREXIT_PRICING_PREPARE_TKOMP  
  USEREXIT_PRICING_CHECK  
  Custom BAdIs related to pricing or profit margin checks.
  
  
  
  SAP Notes: Search for SAP Notes related to WS475 for any known issues or patches.
  
  
  
  Summary:
  The WS475 error indicates that the system has detected a profit margin below the allowed minimum. To resolve it, verify and adjust the minimum profit margin settings, ensure correct pricing and cost data, and modify sales prices or discounts accordingly. If necessary, review custom enhancements that enforce this check.
  
  If you provide your system version or more context (e.g., sales document type, pricing procedure), I can help with more specific guidance.