How To Fix VAL111 - The market exchange rate is used instead of the implicit exchange rate

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 111

• Message text: The market exchange rate is used instead of the implicit exchange rate

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message VAL111 - The market exchange rate is used instead of the implicit exchange rate ?

  The SAP error message VAL111 indicates that the system is using the market exchange rate instead of the implicit exchange rate for a particular transaction. This typically occurs in the context of foreign currency valuation or when dealing with transactions that involve multiple currencies.
  Cause:
  
  
  Currency Settings: The implicit exchange rate is usually derived from the system's configuration and is based on the currency settings in the company code or the controlling area. If the implicit exchange rate is not defined or is not available for the specific currency pair, the system defaults to the market exchange rate.
  
  
  Missing Exchange Rate: The implicit exchange rate may not be maintained in the system for the relevant currency pair, leading the system to revert to the market exchange rate.
  
  
  Transaction Type: Certain transaction types may require the use of market exchange rates instead of implicit rates, depending on the configuration of the valuation methods.
  
  
  Valuation Method: The valuation method set in the configuration may dictate the use of market rates for certain scenarios.
  
  
  Solution:
  
  
  Check Exchange Rate Configuration:
  
  Go to the transaction code OB08 to check the exchange rates maintained in the system. Ensure that the implicit exchange rates for the relevant currency pairs are correctly defined.
  
  
  
  Review Currency Settings:
  
  Verify the currency settings in the company code and controlling area. Ensure that the settings are correctly configured to allow for implicit exchange rates.
  
  
  
  Adjust Valuation Method:
  
  If the valuation method is causing the issue, you may need to adjust it. This can be done in the configuration settings under Financial Accounting (FI) > General Ledger Accounting > Valuation > Foreign Currency Valuation.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team to understand the specific configuration settings that may be affecting the use of implicit exchange rates.
  
  
  
  Testing:
  
  After making changes, perform a test transaction to ensure that the implicit exchange rate is now being used as expected.
  
  
  
  Related Information:
  
  
  Transaction Codes: 
  
  OB08: Maintain exchange rates.
  OB22: Define currency types.
  OBY6: Define the currency for the company code.
  
  
  
  SAP Notes: Check for any relevant SAP Notes that may address specific issues related to VAL111 or currency valuation.
  
  
  Documentation: Refer to SAP Help Portal for detailed documentation on currency valuation and exchange rate settings.
  
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support or a consultant who specializes in SAP Financials for further assistance.