How To Fix VAL021 - Impairment leads to inconsistent amortized acquisition value.

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 021

• Message text: Impairment leads to inconsistent amortized acquisition value.

What causes this issue?

You are trying to post an impairment. This impairment posting would
result in inconsistent amortized acquisition values (for example,
negative amortized acquisition values for an active position).
The calculation of the impairment posting is based on the book values
(including all previous valuations). However, the valuations are not
part of the amortized acquisition value. This could lead to negative
amortized acquisition values if the previous valuations are not
reset/reversed.

System Response

No impairment posting is made.

How to fix this error?

Either the previous (realized and/or unrealized) valuations are reset by
the impairment procedure (setting the corresponding indicators in
imparment procedure &V1& - see
<DS:SIMG.TRGV_IMP_PROC>Define Impairment Procedure</>) or only
valuations with reset are used (that is, all valuations without reset
before the impairment key date have to be reversed).

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message VAL021 - Impairment leads to inconsistent amortized acquisition value. ?

  The SAP error message VAL021, which states "Impairment leads to inconsistent amortized acquisition value," typically occurs in the context of asset accounting when there is a discrepancy in the amortized acquisition value of an asset due to impairment adjustments. This can happen when the impairment of an asset is not properly reflected in the system, leading to inconsistencies in the financial records.
  Cause:
  
  Impairment Not Processed Correctly: The impairment of an asset may not have been recorded correctly, or the impairment amount may not match the expected values in the system.
  Inconsistent Data: There may be inconsistencies in the asset master data or transaction data that affect the calculation of the amortized acquisition value.
  Incorrect Configuration: The configuration settings for asset accounting may not be set up correctly, leading to issues in how impairments are handled.
  Missing or Incorrect Depreciation Runs: If depreciation runs are not executed correctly after an impairment, it can lead to inconsistencies.
  
  Solution:
  
  Review Impairment Entries: Check the impairment entries for the asset in question. Ensure that the impairment amount is correctly recorded and that it aligns with the expected values.
  Check Asset Master Data: Verify the asset master data for any inconsistencies or errors that could affect the amortized acquisition value.
  Run Depreciation: If the impairment has been recorded correctly, ensure that the depreciation run has been executed after the impairment entry. This will help to recalculate the amortized acquisition value.
  Reconcile Values: Compare the values in the asset accounting module with the general ledger to identify any discrepancies. Make necessary adjustments to reconcile the values.
  Configuration Review: If the issue persists, review the configuration settings for asset accounting to ensure they are set up correctly for handling impairments.
  Consult Documentation: Refer to SAP documentation or help notes related to asset accounting and impairments for additional guidance.
  
  Related Information:
  
  Transaction Codes: You may use transaction codes like AS02 (Change Asset), ABZON (Transfer Within Company Code), or ABAVN (Unplanned Depreciation) to manage asset impairments.
  SAP Notes: Check for relevant SAP Notes that may address specific issues related to the VAL021 error message.
  Support: If the issue cannot be resolved internally, consider reaching out to SAP support for assistance.
  
  By following these steps, you should be able to identify the cause of the VAL021 error and implement the necessary solutions to resolve it.