How To Fix VAL116 - Foreign currency valuation caused a change of the sign of the book value

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 116

• Message text: Foreign currency valuation caused a change of the sign of the book value

What causes this issue?

,,The position is managed according to position management procedure.
This position management procedure was set up with the option Manage
Assets and Liabilities Balance Sheet Account in Liability Position /
Asset Position section. The valuation caused a change of the sign of the
book value. As a result, the system is unable to perform the valuation
consistently.
,,&V1&
,,&V2&

System Response

Valuation is terminated.

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 VAL116 - Foreign currency valuation caused a change of the sign of the book value ?

  The SAP error message VAL116 indicates that during the foreign currency valuation process, a change in the sign of the book value has occurred. This typically happens when the valuation of an asset or liability in a foreign currency results in a negative value, which is not permissible in the context of the accounting principles being applied.
  Cause:
  
  Currency Fluctuations: Significant changes in exchange rates can lead to a situation where the valuation of an asset or liability in a foreign currency results in a negative book value.
  Incorrect Configuration: The configuration settings for foreign currency valuation may not be set up correctly, leading to unexpected results.
  Data Entry Errors: Incorrect data entries in the asset master records or in the transaction data can lead to discrepancies in the valuation.
  Valuation Methods: The method used for valuation (e.g., moving average, FIFO, etc.) may not be appropriate for the specific asset or liability, leading to incorrect calculations.
  
  Solution:
  
  Review Exchange Rates: Check the exchange rates used for the valuation. Ensure that they are up-to-date and correctly configured in the system.
  Check Asset Master Data: Review the asset master data for any inconsistencies or errors that could lead to incorrect valuations.
  Valuation Configuration: Verify the configuration settings for foreign currency valuation in the system. Ensure that the valuation methods and parameters are correctly set up.
  Re-run Valuation: After making necessary corrections, re-run the foreign currency valuation process to see if the error persists.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling this error message.
  Seek Expert Help: If the issue persists, consider consulting with an SAP expert or your internal SAP support team for further analysis and resolution.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes such as AW01N (Asset Explorer) to review asset details or F.05 (Foreign Currency Valuation) to perform the valuation.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on foreign currency valuation issues.
  Testing in Sandbox: If possible, replicate the issue in a sandbox environment to test potential solutions without affecting the production environment.
  
  By following these steps, you should be able to identify the root cause of the VAL116 error and implement a solution to resolve it.