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

SAP Error Message - Details

• 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 being processed may not be compatible with the current valuation settings.
  
  Solution:
  To resolve the VAL019 error, you can consider the following steps:
  
  
  Check Valuation Method:
  
  Review the valuation method assigned to the security. If it is set to affect net income, you may need to change the valuation method to one that does not impact net income for impairment purposes.
  
  
  
  Adjust Accounting Configuration:
  
  Consult with your SAP FI/CO (Financial Accounting/Controlling) team to review the configuration settings related to security valuations. Ensure that the settings allow for impairments under the current valuation method.
  
  
  
  Review Security Settings:
  
  Check the specific security settings in the SAP system. Ensure that the security is correctly configured for impairment postings.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on handling impairments and security valuations. This may provide insights into best practices and configuration settings.
  
  
  
  Use Alternative Posting Methods:
  
  If the impairment cannot be posted due to the current settings, consider alternative methods for recognizing the impairment, such as adjusting the valuation method temporarily or using a different transaction type.
  
  
  
  Seek SAP Support:
  
  If the issue persists, consider reaching out to SAP support or your internal SAP support team for further assistance. They may provide specific guidance based on your system configuration and version.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates on handling impairments in securities.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FBL3N (Display G/L Account Line Items) or F-28 (Post Incoming Payments) that may help in reviewing the financial postings related to the security.
  Training and Documentation: Ensure that users involved in financial postings are trained on the implications of security valuations and impairments to prevent similar issues in the future.
  
  By following these steps, you should be able to address the VAL019 error and successfully process the impairment for the security in question.