How To Fix VAL059 - Amortization is not possible for security ID &1 with repayment type &2

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 059

• Message text: Amortization is not possible for security ID &1 with repayment type &2

What causes this issue?

Security &V1& is in a position with position management procedure &V3&.
In accordance with the settings in the position management procedure,
you have attempted to apply amortization. However, the security ID has
repayment type &V2& and therefore cannot be amortized.

System Response

The valuation step <LS>Amortization</> is terminated.

How to fix this error?

In Customizing, change the settings for the amortization step. For
<LS>Amortization To</>, choose one of the following options: <LS>
Amortization to Issuer's Next Termination Date</> or <LS>Amortization to
Date of Termination (SE)/Fixed Per. End (LO)</>. If this setting is used
in the system, ensure that the setting <LS>Notice Periods of Issuer</>
has been defined for the security ID in the class master data.

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 VAL059 - Amortization is not possible for security ID &1 with repayment type &2 ?

  The SAP error message VAL059 indicates that amortization is not possible for a specific security ID with a given repayment type. This error typically arises in the context of financial transactions involving securities, such as bonds or loans, where amortization schedules are used to manage the repayment of principal and interest.
  Cause:
  The error can occur due to several reasons, including:
  
  
  Incompatible Repayment Type: The repayment type specified for the security may not support amortization. For example, certain types of securities may only allow for bullet repayment or may not have an amortization schedule defined.
  
  
  Incorrect Configuration: The security ID may not be properly configured in the system, leading to issues with its amortization settings.
  
  
  Missing Data: Required data for the amortization process may be missing or incorrectly entered in the system.
  
  
  Security Type Restrictions: Some security types may have specific restrictions that prevent amortization from being processed.
  
  
  Valuation Parameters: The valuation parameters for the security may not be set up correctly, leading to issues with amortization.
  
  
  Solution:
  To resolve the VAL059 error, you can take the following steps:
  
  
  Check Repayment Type: Verify that the repayment type associated with the security ID is compatible with amortization. If it is not, you may need to change the repayment type or adjust the security configuration.
  
  
  Review Security Configuration: Ensure that the security ID is correctly configured in the system. Check the settings related to amortization and repayment.
  
  
  Complete Required Data: Make sure that all necessary data for the security is entered correctly. This includes details such as interest rates, payment schedules, and any other relevant parameters.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidelines on the security type and its amortization capabilities.
  
  
  Contact Support: If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert who can provide further assistance.
  
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like FTR_EDIT (for financial transactions) or FTR_CREATE (for creating financial transactions) to review or modify the security details.
  SAP Notes: Check for any relevant SAP Notes that may address known issues or provide patches related to this error message.
  User Manual: Review the user manual or configuration guide for the specific module you are working with (e.g., Treasury and Risk Management) to understand the requirements for amortization.
  
  By following these steps, you should be able to identify the cause of the VAL059 error and implement the necessary solutions to resolve it.