How To Fix 67505 - Market value may not be smaller than the collateral value proposal

SAP Error Message - Details

• Message type: E = Error

• Message class: 67 - Loans Messages - Financial Assets Management

• Message number: 505

• Message text: Market value may not be smaller than the collateral value proposal

What causes this issue?

The market value may not be smaller than the default value for the
collateral value according to the valuation principles.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Increase the market value or decrease the default value for the
collateral value.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 67505 - Market value may not be smaller than the collateral value proposal ?

  The SAP error message 67505, "Market value may not be smaller than the collateral value proposal," typically occurs in the context of financial transactions involving collateral management in SAP. This error indicates that the market value of an asset is less than the proposed collateral value, which is not permissible according to the business rules set in the system.
  Cause:
  
  Market Value Calculation: The market value of the asset has been calculated or entered incorrectly, leading to a value that is lower than the collateral value.
  Collateral Value Proposal: The collateral value proposal may have been set too high based on the asset's current market conditions or valuation.
  Data Entry Errors: There may be manual entry errors in the asset valuation or collateral proposal.
  Valuation Methodology: The methodology used to determine the market value may not align with the expected standards or rules in the system.
  
  Solution:
  
  Review Market Value: Check the market value of the asset in question. Ensure that it is accurately calculated and reflects the current market conditions.
  Adjust Collateral Value Proposal: If the market value is correct, consider adjusting the collateral value proposal to ensure it is not set higher than the market value.
  Data Validation: Validate all data entries related to the asset and collateral to ensure there are no discrepancies or errors.
  Consult Business Rules: Review the business rules and policies regarding collateral management to ensure compliance and proper valuation practices.
  System Configuration: If the issue persists, it may be necessary to review the configuration settings in SAP related to collateral management and asset valuation.
  
  Related Information:
  
  SAP Documentation: Refer to SAP Help documentation for detailed information on collateral management and asset valuation.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to collateral management, such as those for asset valuation and collateral proposals.
  User Roles: Ensure that users involved in the process have the appropriate roles and authorizations to make necessary adjustments.
  Consult SAP Support: If the issue cannot be resolved internally, consider reaching out to SAP support for further assistance.
  
  By following these steps, you should be able to address the error message 67505 effectively.