How To Fix FVER140 - There are short positions which cannot be exercised

SAP Error Message - Details

• Message type: E = Error

• Message class: FVER - Message Class for Executable Security Rights

• Message number: 140

• Message text: There are short positions which cannot be exercised

What causes this issue?

One or several securities accounts exist(s) for rights category &V1& in
company code &V2& with short positions. You cannot exercise rights with
short positions. Although the positions for these securities accounts
are displayed, the position to be exercised is zero and cannot be
changed.

System Response

The function cannot be executed.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FVER140 - There are short positions which cannot be exercised ?

  The SAP error message FVER140, which states "There are short positions which cannot be exercised," typically occurs in the context of financial transactions, particularly when dealing with options or futures in the SAP system. This error indicates that there are short positions (i.e., positions where the entity has sold securities it does not own) that cannot be exercised due to certain conditions not being met.
  Causes:
  
  
  Insufficient Long Positions: The most common cause is that the user does not have enough long positions (i.e., positions where the entity owns the securities) to cover the short positions. In order to exercise an option, you generally need to have the underlying asset.
  
  
  Settlement Restrictions: There may be restrictions on the settlement of the short positions, such as regulatory or internal policy constraints.
  
  
  Expired Options: The options or contracts associated with the short positions may have expired, making them ineligible for exercise.
  
  
  Incorrect Configuration: There may be configuration issues in the SAP system related to the handling of short positions and their exercise.
  
  
  Market Conditions: Certain market conditions or rules may prevent the exercise of short positions.
  
  
  Solutions:
  
  
  Check Long Positions: Verify that you have sufficient long positions to cover the short positions. If not, you may need to acquire the necessary securities.
  
  
  Review Contract Status: Ensure that the options or contracts are still valid and have not expired. If they have expired, you will not be able to exercise them.
  
  
  Consult with Compliance: If there are regulatory or internal policy restrictions, consult with your compliance or legal team to understand the limitations.
  
  
  System Configuration: If you suspect a configuration issue, work with your SAP administrator or technical team to review the settings related to short positions and their exercise.
  
  
  Documentation and Support: Refer to SAP documentation for further details on handling short positions and consider reaching out to SAP support for assistance if the issue persists.
  
  
  Related Information:
  
  SAP Modules: This error is often encountered in modules related to Financial Accounting (FI) and Treasury Management (TR).
  Transaction Codes: Familiarize yourself with relevant transaction codes that may help in managing positions, such as transaction codes for managing derivatives or securities.
  User Roles: Ensure that the user has the appropriate roles and permissions to execute the transactions related to options and futures.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the FVER140 error in SAP.