M8306 - Price change not allowed when value-based IM active

SAP Error Message - Details

• Message type: E = Error

• Message class: M8 - Invoice Verification/Valuation

• Message number: 306

• Message text: Price change not allowed when value-based IM active

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message M8306 - Price change not allowed when value-based IM active ?

  The SAP error message M8306, "Price change not allowed when value-based IM active," typically occurs in the context of Inventory Management (IM) when you attempt to change the price of a material that is managed using value-based inventory management. This means that the system is set up to manage inventory values based on the actual costs of the materials rather than on a fixed price.
  Cause:
  The error arises due to the following reasons:
  
  Value-Based Inventory Management: The material is configured for value-based inventory management, which means that the system does not allow price changes for materials that are managed in this way.
  Price Change Attempt: You are trying to change the price of a material that is currently active in the system, and the system is preventing this action to maintain the integrity of inventory valuation.
  
  Solution:
  To resolve this error, you can consider the following approaches:
  
  
  Check Material Configuration:
  
  Verify if the material is indeed set up for value-based inventory management. You can check this in the material master data under the accounting view.
  
  
  
  Adjust Pricing Strategy:
  
  If you need to change the price, consider whether you can adjust the pricing strategy or the valuation method for the material. This may involve changing the material's valuation class or moving it to a different inventory management strategy.
  
  
  
  Use Alternative Methods:
  
  If you need to reflect a price change, consider using alternative methods such as:
  
  Adjusting the purchase order price if applicable.
  Creating a new material master record with the desired price if the change is significant.
  
  
  
  
  
  Consult with SAP Support:
  
  If you are unsure about the implications of changing the material's configuration or if you need to maintain value-based inventory management, consult with your SAP support team or a functional consultant.
  
  
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like MM02 (Change Material) to check or modify material master data.
  Documentation: Refer to SAP documentation regarding inventory management and material valuation for more detailed guidance on managing materials under value-based inventory management.
  User Exits and BAdIs: If you have specific business requirements, consider implementing user exits or Business Add-Ins (BAdIs) that allow for custom handling of pricing and inventory management.
  
  By following these steps, you should be able to address the M8306 error and manage your material pricing effectively within the constraints of value-based inventory management.