SAP Knowledge Base Article - Public

2723240 - Inventory Cost Update Error : No functional area could be assigned


You are unable to update inventory cost for the materials due to the error : No functional area could be assigned


SAP Business Bydesign

Reproducing the Issue

  1. Go to the Inventory Valuation work center.
  2. Under Master Data > Materials view.
  3. Select the Material > Edit and navigate to Valuation tab.
  4. Maintain Companies/Business Residence settings and Account Determination Group.
  5. Click on Edit Cost and maintain the cost and save it.

Error:  No functional area could be assigned


You are using the Reporting Principle as Function of exp, profit ctr/seg. But there are no default functional area or specific functional area that is assigned for the G/L Account in question.


  1. Go to the Business Configuration work center.
  2. Implementation Projects > Open Activity List > Fine-tune > Settings for Income Statements by Function of Expense and Earned Profit Analysis.
  3. In the Edit Functional Area,  maintain the default functional area.
  4. In the Edit Functional Area Determination, Depending on your accounting principle, you can specify how the funcional areas should derived by the system based on general ledger accounts or cost center types.

Example: For this particular posting, since it is a manual change of inventory cost, system is trying to pick a GL from Inventories > Gain and Losses > Gain/Loss from Inventory Revaluation.


no functional area could be assigned. , KBA , SRD-FIN-INV , Inventory , Problem


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