3112814 - Error ML4HMASTER223 happens when changing price determination

Error ML4HMASTER223 happens when changing price determination.
"Reverse closing entries in previous period for material XXXX. "

SAP S/4HANA Cloud Public Edition

In app Change Price Determination, change material's price determination from 3 to 2.

As explained in the long text of the error message:

"You want to change the price determination control of the material from "3" (single-/multi-level) to "2" (transaction-based). The material has status "Closing entries exist" in the previous period for at least one ledger."

This is standard design.

According to the description in the long text of the message, please proceed with the action.

There might be question that, why for some materials, the error happens, but not for other materials.
The reason could be that the no error materials are still not relevant with actual costing. For example, there is no stock for these materials. You can check the status of the material with Material Price Analysis.

ML4HMASTER 223, price determination , KBA , CO-PC-ACT-2CL , Actual Costing (Public Cloud) , Problem