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

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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 settle it in cash instead.
  
  
  Change Settlement Method: If you need to settle physically, you may need to change the contract type to one that allows for physical settlement. This may involve creating a new contract or modifying the existing one, depending on your business requirements.
  
  
  Consult Documentation: Refer to the SAP documentation or help files related to commodity trading and risk management to understand the specific rules and configurations for average price options and physical settlements.
  
  
  Configuration Settings: Check the configuration settings in your SAP system. There may be specific settings that govern how different types of contracts can be settled. Ensure that these settings align with your intended settlement method.
  
  
  Contact Support: If you are unable to resolve the issue through the above steps, consider reaching out to your SAP support team or consulting with an SAP expert who specializes in commodity trading and risk management.
  
  
  Related Information:
  
  SAP Modules: This error is typically encountered in modules such as SAP Commodity Management (CM) or SAP Risk Management (RM).
  Documentation: Look for SAP Notes or Knowledge Base Articles (KBAs) related to T7312 for additional insights or updates regarding this error.
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to address the T7312 error and proceed with the appropriate settlement method for your contracts.