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

VAL059 - Overview

• 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