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

VAL208 - Overview

• 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