1714641 - Error Message "Item X: Service product and item type code do not match. Check your service master data to ensure that you have not defined a service product with an item category group for expenses, or vice versa.

When you assign a Service Product ABC as a Line Item into a Sales Order, system throws below error message:

Item XX: Service product and item type code do not match. Check your service master data to ensure that you have not defined a service product with an item category group for expenses, or vice versa.

SAP Business ByDesign

1. Go to the Sales Orders work center.
2. Select New Sales Order from the common tasks.
3. Maintain the respective information.
4. Go to Items tab and add the service ABC (ABC represents the ID of the service)
5. The following error message occurs:
   Item XX: Service product and item type code do not match. Check your service master data to ensure that you have not defined a service product with an item category group for expenses, or vice versa.

There can be two causes for this issue:

A) The Service ABC is not marked as Expense but the Item Goup is an expense item group.

To verify follow the below steps:

1. Go to the Product and Service Portfolio work center.
2. Select the Services view.
3. Open the Service ABC.
4. Go to the Sales tab.
5. Select the respective Sales Organization used in the Sales Order.
6. You can see that the item group is an expense item group e.g. XFIX - Expense - fixed price without actuals
7. Navigate to the General tab.
8. You can see that the Expense indicator is not checked.

B) There is no rule for party determination maintained.

The Service ABC is marked as Expense in the master data. But when the sales order is created, no party role determination takes place for seller, sales unit, ... It is resulting in the creation of a text item instead of an expense.

C)The Service ABC is marked as Expense but the Item Group in the Service Master Data is a Service item Group.

1. Go to the Product and Service Portfolio work center.
2. Select the Services view.
3. Open the Service ABC.
4. Go to the Sales tab.
5. Select the respective Sales Organization used in the Sales Order.
6. You can see that the item group is an service item group e.g. SEFL - Service - fixed price without actuals
7. Navigate to the General tab.
8. You can see that the Expense indicator is checked.

A) If you want to use a Service as an Expense in a Sales Order, it is required that the Service is marked as Expense.

Once the service master data was saved, it is not possible to activate the expense indicator anymore. The activation is only possible before the first save.

The reason why the indicator cannot be activate after the first save is due to the fact that the service could have been used which would affect other scenarios and lead to inconsistencies.

To overcome the issue, you can create a New Service with the same data as per the above service (you can use the Copy functionality) and in addition mark it as an Expense. After saving the Service, you can use it in a Sales Order.

If you wish to use this Service as a Service instead you need to ensure that a Service Item Group is used in the Sales tab e.g. SEFL - Service - fixed price without actuals

 
B) You need to create rules for party determination.

See KBA 1435095 - How to Determine Sales Unit in a Sales Order.

For detailed information on the Party Role Determination in a Sales Document you can find the following Blog: https://blogs.sap.com/2016/05/16/party-role-determination-in-a-sales-document/

Once the party determination is set up and the expense can be determined correctly, this issue can be avoided.

C) If you want to use a Service as an Service in a Sales Order, it is required that the Service is not marked as Expense.

Once the service master data was saved, it is not possible to deactivate the expense indicator anymore. The activation/deactivation is only possible before the first save.

The reason why the indicator cannot be deactivated after the first save is due to the fact that the service could have been used which would affect other scenarios and lead to inconsistencies.

To overcome the issue, you can create a New Service with the same data as per the above service (you can use the Copy functionality) and ensure that the Expense Indicator is not active. After saving the Service, you can use it in a Sales Order.

If you wish to use this Service as an Expense instead you need to ensure that a Service Item Group is used in the Sales tab e.g. XFIX - Expense - fixed price without actuals

2642419 - The Expense Indicator In The Service Master Data is Grayed Out

1435095 - How to Determine Sales Unit in a Sales Order.

Service, Expense Indicator, Category Group, Master Data, ByD, item type code do not match, Expenses, party role determination , KBA , service product , expense indicator , AP-SLO , Sales Order Processing , How To