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author's profile photo Former Member
Former Member

error during settlement

Hi all

While trying to settle the production order through transaction ko88 , the system gives

following error msg:

"Material Price is Negative".

how to solve this error why this error ocurred

I am getting below mesaage

am getting the following error message during settlement

Moving average price for material is negative: G035018P2105 1200 IN HOUSE

Message no. M8783


This item would create a stock value posting which would result in a negative moving average price for the material.


The category of this message can be changed in Customizing for Invoice Verification. This means that you can receive a message as an error message even though it is defined as a warning message in the standard system.

The following documentation deals with the case applicable to the standard system only.

System Response

The system does not allow a negative moving average price.


Check your entry in the field "Amount" and correct it if necessary.

If your entry is correct, check the following for the material

the stock value

(Environment -> Master data info -> Display material)

the posting history

(Environment -> Line items -> For material).

It might be necessary to cancel past postings (for example, incorrectly valuated goods receipts or incorrect price changes), before you can carry out your posting.

If you wish to carry out a price change, the total stock of the material may be negative. A price cannot be changed if the stock is negative.

Thanks in advance

Sandeep patil

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1 Answer

  • author's profile photo Former Member
    Former Member
    Posted on Dec 04, 2007 at 10:19 AM


    The error occurs if goods receipts were entered and reversed for the product cost collector in the period in question for which the reversals were executed in total for higher inventory values than the goods receipts in total. In this case, a distribution rule is generated with negative equivalence number which causes the above-mentioned error message.


    Implement the correction from Note 174440 into the program and repeat the settlement.

    Also look for notes 172122,147761



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