EM C+ 723 Periodic unit price of the material will be negative

Question

Hello All,
We have a problem in our production system , with the material ledger closing in transaction CKMLCP where for period 11 / 2011 the system has issued the error that u201CPeriodic unit price of the material will be negativeu201D for material ABCD in plant 1000.
The analysis shows an amount against 'Not Distributed' as a separate line above cumulative inventory.
We would like to know the reason for the error.
regards
Monali

Answer 1

Dear Monali.
The error C+723 is not caused by a program error. It is issued when
the calculated price of a certain material would become negative.
The error occurs only for cycle materials because for materials that
are not in a cycle the system automatically applied a fallback strate
gy to avoid a negative price (by using a different price, for example
the actual price of the previous period or the standard price).
There are two options to deal with the error:
1) You can analyze the reason why the price would become negative.
   For this you can use the error document which is created by
   multi level price determinatio for the affected material.
   (-> use transaction CKM3). The negative price is caused by
   negative variances allocated during the period at the material
   itself or at one of its input materials.
   You can then analyze via CKM3 the postings done for this material
   and do a correction posting or complete a missing posting (for
   example a missing order settlement).
   The long text of message C+723 gives more information.
   After doing correction posting please repeat single and multi
   level price determination.
2) If you have no time to analyze the error you can choose the
   automatic error management for cycle materials.
   In the variant maintenance of multi level price determination
   choose Edit -> Show postprocessing options
   In the frame 'Negative price: automatic error management you can
   then check the box Cycle 'cut all connections'.
   By doing this instead of issuing C+723 the system calculates
   the cycle by cutting all connections. Thus the materials are
   processed successfully, but no variances are rolled between
   materials within the cycle.
   The F1 help gives more information.
br, Guido