How To Fix VAL019 - Impairment not possible if security valuation is affecting net income

VAL019 - Overview

• Message type: E = Error

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

• Message number: 019

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

What causes this issue?

The position management procedure &v1& is using the impairment procedure
&v3&. On the other hand, the position management procedure &v1& is also
using the security valuation procedure &v2&. This security valuation
procedure &v2& is not using the setting 'do not realise gains/losses'.

System Response

Impairment can only be posted if security 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
managementprocedure &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 VAL019 - Impairment not possible if security valuation is affecting net income ?

  The SAP error message VAL019 indicates that an impairment cannot be processed because the security valuation is affecting net income. This typically occurs in the context of financial accounting and asset management within SAP, particularly when dealing with securities and their valuations.
  
  Cause:
  The error arises when you attempt to post an impairment for a security that is valued in a way that impacts the net income. In SAP, securities can be valued at different levels (e.g., market value, amortized cost), and if the valuation method used is set to affect net income, the system will not allow an impairment posting. This is often due to the following reasons:
  
  Valuation Method: The security is set to be valued in a way that directly impacts the profit and loss statement.
  Accounting Configuration: The configuration settings in the financial accounting module may not allow impairments for securities that affect net income.
  Transaction Type: The type of transaction