How To Fix VAL107 - Market exchange rate is being used instead of book exchange rate

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 107

• Message text: Market exchange rate is being used instead of book exchange rate

What causes this issue?

The valuation step requires the foreign exchange book rate for the
valuation key date. The system determines the foreign exchange book rate
from the book values in position currency and valuation currency.
No foreign exchange book rate could be determined for this position
since at least one of the book values is 0.
&V3&

System Response

Instead of the foreign exchange book rate, the system uses the foreign
exchange market rate on the valuation key date.
&V1&
&V2&

How to fix this error?

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message VAL107 - Market exchange rate is being used instead of book exchange rate ?

  The SAP error message VAL107 indicates that the system is using the market exchange rate instead of the book exchange rate for a specific transaction or valuation. This typically occurs in the context of foreign currency valuation or when dealing with financial transactions that involve multiple currencies.
  Cause:
  
  Currency Settings: The system is configured to use the market exchange rate for certain transactions, which may not align with the expected book exchange rate.
  Valuation Method: The valuation method set in the configuration may prioritize market rates over book rates.
  Missing Configuration: The book exchange rate may not be defined or maintained in the system for the relevant currency pair.
  Transaction Type: The specific transaction type may be set to default to market rates due to its nature (e.g., certain financial instruments or investment transactions).
  
  Solution:
  
  
  Check Exchange Rate Types: Verify the exchange rate types configured in your SAP system. Ensure that the book exchange rate is defined and maintained correctly for the relevant currency pair.
  
  Go to Transaction OB08 to check and maintain exchange rates.
  
  
  
  Review Valuation Settings: Check the valuation settings in the configuration to ensure that the book exchange rate is being used where appropriate.
  
  Navigate to Transaction OBA1 to review the settings for currency valuation.
  
  
  
  Adjust Transaction Settings: If the transaction type is set to use market rates, consider adjusting the settings to use the book exchange rate instead, if applicable.
  
  
  Consult Documentation: Review SAP documentation or consult with your SAP functional consultant to understand the specific configuration and settings that may be causing this issue.
  
  
  Testing: After making changes, perform a test transaction to ensure that the book exchange rate is now being used as expected.
  
  
  Related Information:
  
  Exchange Rate Types: In SAP, different exchange rate types can be defined (e.g., M for average rate, B for bank rate, etc.). Understanding these types is crucial for proper configuration.
  Foreign Currency Valuation: Familiarize yourself with the foreign currency valuation process in SAP, as it can impact how exchange rates are applied.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on handling exchange rates.
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support or a consultant who specializes in financial modules to further diagnose and resolve the problem.