How To Fix IDCFM_US_FAMA_MSG025 - Wash sale for purchase &1 cannot be executed

SAP Error Message - Details

• Message type: E = Error

• Message class: IDCFM_US_FAMA_MSG - Treasury US Localization

• Message number: 025

• Message text: Wash sale for purchase &1 cannot be executed

What causes this issue?

The selected purchase cannot be assigned to the given sale and included
in wash sale.

System Response

The system terminates the process.

How to fix this error?

The reasons can be the following:
The purchase has already been assigned to another sale. You are not
allowed to assign a purchase to more than one sale.
You must consider the number of shares (units) of the purchase or
purchases you have already assigned to the given sale. If the sum of the
purchased shares in the assigned purchases equals to or exceeds the
number of sold shares, you are not allowed to assign additional
purchases to the given sale.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message IDCFM_US_FAMA_MSG025 - Wash sale for purchase &1 cannot be executed ?

  The SAP error message IDCFM_US_FAMA_MSG025, which states "Wash sale for purchase &1 cannot be executed," typically relates to issues in the context of financial transactions, particularly in the area of asset management and securities trading. A "wash sale" refers to a transaction where a security is sold at a loss and then repurchased shortly thereafter, which can have tax implications.
  Cause:
  
  Regulatory Restrictions: The transaction may violate regulations regarding wash sales, which are designed to prevent tax evasion.
  Configuration Issues: There may be incorrect settings in the SAP system related to the handling of wash sales.
  Data Integrity Issues: The data associated with the purchase may be incomplete or incorrect, preventing the execution of the wash sale.
  Timing Issues: The timing of the transactions may not meet the criteria for a wash sale, such as the required holding period.
  
  Solution:
  
  Review Transaction Details: Check the details of the purchase transaction referenced by &1. Ensure that all necessary data is complete and accurate.
  Check Configuration Settings: Review the configuration settings in the SAP system related to wash sales. Ensure that they are set up correctly according to your organization's policies and regulatory requirements.
  Consult Documentation: Refer to SAP documentation or help resources for guidance on handling wash sales and the specific error message.
  Adjust Transactions: If the transaction does not meet the criteria for a wash sale, consider adjusting the transaction or waiting for the appropriate holding period before executing the sale.
  Seek Expert Advice: If the issue persists, consult with a financial expert or SAP consultant who specializes in asset management and securities trading.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error message or provide updates and patches.
  Regulatory Guidelines: Familiarize yourself with the tax regulations regarding wash sales in your jurisdiction to ensure compliance.
  Training and Documentation: Ensure that users involved in asset management and trading are trained on the implications of wash sales and how to manage them within SAP.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the error message IDCFM_US_FAMA_MSG025 effectively.