How To Fix VAL032 - Product category &1 is not supported by the foreign currency valuation

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 032

• Message text: Product category &1 is not supported by the foreign currency valuation

What causes this issue?

The position for which a foreign currency valuation is to be carried
out is of product category &V1&. However, this product category is not
supported by the foreign currency valuation.

System Response

The foreign currency valuation step does not contribute to valuation of
the position.

How to fix this error?

Assign an appropriate position management procedure to the position.

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 VAL032 - Product category &1 is not supported by the foreign currency valuation ?

  The SAP error message VAL032 indicates that the product category specified (represented by &1) is not supported for foreign currency valuation. This typically occurs during the foreign currency valuation process in SAP, where the system attempts to evaluate the value of inventory or other financial items in a currency different from the local currency.
  Cause:
  
  Unsupported Product Category: The product category you are trying to evaluate may not be configured for foreign currency valuation in the system.
  Configuration Issues: The valuation settings for the product category may not have been properly set up in the system.
  Missing Master Data: The material master data for the product category may not have the necessary settings for foreign currency valuation.
  Transaction Type Restrictions: Certain transaction types may not allow foreign currency valuation for specific product categories.
  
  Solution:
  
  
  Check Product Category Configuration:
  
  Go to the configuration settings in SAP (Transaction SPRO).
  Navigate to the relevant section for Material Management or Financial Accounting.
  Ensure that the product category in question is set up to allow foreign currency valuation.
  
  
  
  Review Material Master Data:
  
  Use Transaction MM03 to display the material master data for the affected product category.
  Check the accounting view and ensure that the foreign currency valuation settings are correctly configured.
  
  
  
  Adjust Valuation Methods:
  
  If necessary, adjust the valuation methods for the product category to include foreign currency valuation.
  This may involve changing the valuation class or the account determination settings.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help files related to foreign currency valuation to ensure that all necessary steps have been followed.
  
  
  
  Testing:
  
  After making changes, perform a test run of the foreign currency valuation process to ensure that the error no longer occurs.
  
  
  
  Seek Help from SAP Support:
  
  If the issue persists after checking the above points, consider reaching out to SAP support for further assistance.
  
  
  
  Related Information:
  
  
  Transaction Codes: 
  
  MM03 (Display Material)
  SPRO (SAP Project Reference Object)
  OB08 (Maintain Exchange Rates)
  
  
  
  Documentation: 
  
  SAP Help Portal for Foreign Currency Valuation
  SAP Notes related to VAL032 for specific patches or updates.
  
  
  
  User Roles: Ensure that the user executing the foreign currency valuation has the necessary authorizations to access and modify the relevant configuration settings.
  
  
  By following these steps, you should be able to identify the cause of the VAL032 error and implement a solution to resolve it.