How To Fix T7312 - Physical settlement with average price options is not permitted.

SAP Error Message - Details

• Message type: E = Error

• Message class: T7 - Forex entry

• Message number: 312

• Message text: Physical settlement with average price options is not permitted.

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

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Smart SAP Assistant

• What is the cause and solution for SAP error message T7312 - Physical settlement with average price options is not permitted. ?

  The SAP error message T7312, which states "Physical settlement with average price options is not permitted," typically occurs in the context of commodity trading and risk management within SAP systems, particularly when dealing with futures and options contracts.
  
  Cause:
  This error generally arises when there is an attempt to perform a physical settlement for a contract that has been defined with average price options. Average price options are financial derivatives that settle based on the average price of the underlying asset over a specified period. However, physical settlement is not allowed for these types of options because they are designed to settle in cash rather than through the delivery of the underlying asset.
  
  Solution:
  To resolve this error, consider the following steps:
  
  
  Check Contract Type: Review the contract type you are trying to settle. Ensure that it is appropriate for physical settlement. If the contract is indeed an average price option, you will need to