How To Fix FTVV_MESSAGES505 - Market value may not be smaller than the collateral value proposal

SAP Error Message - Details

• Message type: E = Error

• Message class: FTVV_MESSAGES - Reporting Financial Assets Management

• Message number: 505

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

What causes this issue?

According to valuation principles, the market value may not be less
than the default collateral value.

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 reduce the default collateral value.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FTVV_MESSAGES505 - Market value may not be smaller than the collateral value proposal ?

  The SAP error message FTVV_MESSAGES505, which states "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 actual market value.
  Data Entry Errors: There may be manual entry errors in either the market value or the collateral value proposal.
  System Configuration: The system settings or rules regarding collateral management may not align with the actual business requirements or asset valuations.
  
  Solution:
  
  Verify Values: Check the market value of the asset and the collateral value proposal. Ensure that the market value is accurately reflecting the current market conditions.
  Adjust Values: If the market value is indeed lower than the collateral value proposal, consider adjusting the collateral value proposal to be in line with the market value.
  Review Configuration: If this error occurs frequently, review the configuration settings in SAP related to collateral management to ensure they are set up correctly.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidelines on how to handle collateral values and market valuations.
  Engage with Financial Experts: If necessary, consult with financial analysts or SAP consultants who specialize in collateral management to ensure compliance with financial regulations and internal policies.
  
  Related Information:
  
  SAP Modules: This error is typically related to the SAP Financial Services (FS) module, particularly in areas dealing with collateral management and risk assessment.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that deal with collateral management, such as those for creating or modifying collateral proposals.
  User Roles: Ensure that users have the appropriate roles and permissions to enter or modify market and collateral values.
  Documentation and Training: Provide training for users on how to correctly enter and manage collateral values to minimize errors.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the FTVV_MESSAGES505 error effectively.