How To Fix VAL208 - Security valuation was suppressed as part of hedge accounting

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 208

• Message text: Security valuation was suppressed as part of hedge accounting

What causes this issue?

You want to value money market transaction &V1& according to the
relevant position management procedure as defined by the rules of hedge
accounting. For this reason, the valuation in the security is
suppressed and hence is not included in the result of the evaluation.
The system does this by setting the market value in the position
currency of the money market transaction to the book value.

System Response

If no errors occur during the valuation, the position was valued
successfully.

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 VAL208 - Security valuation was suppressed as part of hedge accounting ?

  The SAP error message VAL208, which states "Security valuation was suppressed as part of hedge accounting," typically occurs in the context of financial instruments and hedge accounting within the SAP system. This message indicates that the system has suppressed the valuation of a security because it is part of a hedge accounting relationship.
  Cause:
  
  Hedge Accounting Configuration: The error arises when a security is linked to a hedge accounting relationship, and the system is configured to suppress the valuation of such securities to avoid fluctuations in profit and loss that could arise from the valuation of hedged items.
  Valuation Settings: The valuation settings for the security may be configured to suppress valuation in accordance with hedge accounting principles.
  Hedging Relationships: The security may be part of a designated hedging relationship where the fair value changes are not recognized in profit or loss but are instead deferred in other comprehensive income.
  
  Solution:
  
  Review Hedge Accounting Configuration: Check the configuration of hedge accounting in your SAP system. Ensure that the hedge accounting settings are correctly defined and that the securities involved are appropriately classified.
  Check Security Settings: Review the settings for the specific security that is generating the error. Ensure that it is correctly set up for hedge accounting and that the valuation suppression is intentional.
  Valuation Process: If you need to perform a valuation for reporting purposes, consider whether the hedge accounting relationship needs to be adjusted or if the security should be excluded from hedge accounting.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on hedge accounting and security valuation. This can provide insights into how to manage and configure these settings.
  Engage with SAP Support: If the issue persists or if you need further assistance, consider reaching out to SAP support or your internal SAP team for help in resolving the issue.
  
  Related Information:
  
  Hedge Accounting Standards: Familiarize yourself with the relevant accounting standards (such as IFRS 9 or ASC 815) that govern hedge accounting, as they may influence how valuations are handled in your SAP system.
  SAP Notes and Knowledge Base Articles: Check for any SAP Notes or Knowledge Base Articles that may address this specific error message or provide additional context on hedge accounting in SAP.
  Training and Documentation: Consider training sessions or documentation on hedge accounting within SAP to better understand how to manage securities and their valuations in the context of hedging.
  
  By addressing the configuration and understanding the principles behind hedge accounting, you can resolve the VAL208 error and ensure that your financial reporting aligns with accounting standards.