How To Fix VAL018 - Impairment not possible if FX valuation is affecting net income

SAP Error Message - Details

• Message type: E = Error

• Message class: VAL - Treasury: Messages for General Valuation

• Message number: 018

• Message text: Impairment not possible if FX valuation is affecting net income

What causes this issue?

The position management procedure &v1& is using the impairment procedure
&v3& (with enabled FX impairment). On the other hand, the position
management procedure &v1& is also using the foreign currency valuation
procedure &v2&. This foreign currency valuation procedure &v2& is not
using the setting 'do not realise gains/losses'.

System Response

FX-Impairment can only be posted if foreign currency valuation does not
effect net income (ie. is not realized as gain or loss).

How to fix this error?

Correct the valuation and/or impairment procedure of position management
procedure &v1&, using the customizing activity
<DS:SIMG.FTR_BESTFVERFDEF>Define Position Management Procedure</>.

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 VAL018 - Impairment not possible if FX valuation is affecting net income ?

  The SAP error message VAL018 indicates that an impairment cannot be processed because foreign exchange (FX) valuation is affecting net income. This typically occurs in the context of asset accounting and foreign currency valuation, where the system is unable to perform the impairment due to the implications it would have on the financial statements.
  
  Cause:
  
  FX Valuation Impact: The error arises when the asset in question has been subject to foreign currency valuation, and the system detects that this valuation affects the net income. Impairments generally need to be processed in a way that does not conflict with the existing FX valuation rules.
  Accounting Principles: According to accounting principles, impairments should be recognized in a manner that does not distort the financial results, especially when foreign currency valuations are involved.
  
  Configuration Issues: There may be configuration settings in the asset accounting module that are not aligned with the requirements for handling impairments in the