How To Fix VAL304 - The position has purchase value 0 (see long text)

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 304

• Message text: The position has purchase value 0 (see long text)

What causes this issue?

You wish to execute the valuation step 'amortization' for a position.
Units or nominals exist in the position but the acquisition value is 0.

System Response

You cannot carry out an amortization for a position where the
acquisition value is 0. The position is not valued.

How to fix this error?

Using the position list, check if, for this position, the components
show the correct values. If this is not the case, check the protocols
of the relevant transfer runs. Reverse these runs or the initialization
if applicable, and then execute the transfer runs again.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message VAL304 - The position has purchase value 0 (see long text) ?

  The SAP error message VAL304 indicates that a position in a valuation or inventory management context has a purchase value of zero. This typically occurs in scenarios where the system expects a monetary value for a material or item, but it finds that the value is set to zero. This can lead to issues in financial reporting, inventory valuation, and other related processes.
  Causes of VAL304
  
  Missing Purchase Price: The material may not have a defined purchase price in the material master data.
  Incorrect Valuation Class: The valuation class assigned to the material may not be set up correctly, leading to issues in determining the purchase value.
  Inventory Management Issues: There may be discrepancies in inventory management, such as incorrect postings or missing transactions that affect the valuation.
  Material Master Data Issues: The material master data may be incomplete or incorrectly maintained, leading to a zero purchase value.
  Price Control Settings: The price control settings (standard price vs. moving average price) may not be configured correctly, resulting in a zero value.
  
  Solutions to VAL304
  
  
  Check Material Master Data:
  
  Go to the material master (transaction code MM03) and check the purchasing view to ensure that a valid purchase price is maintained.
  If the price is missing, update it with the correct value.
  
  
  
  Review Valuation Class:
  
  Ensure that the valuation class assigned to the material is correct and that it is linked to the appropriate accounts in the chart of accounts.
  
  
  
  Inventory Reconciliation:
  
  Perform a reconciliation of inventory to ensure that all transactions have been posted correctly. Check for any discrepancies that may have led to a zero value.
  
  
  
  Check Price Control Settings:
  
  Verify the price control settings for the material (standard price or moving average price) and ensure they are set according to your business requirements.
  
  
  
  Consult Long Text:
  
  The error message often has a long text that provides additional context. You can view this by clicking on the message or using transaction code SE91 to look up the message class and number.
  
  
  
  Run Reports:
  
  Use relevant reports (e.g., MB5B for stock overview) to identify materials with zero purchase values and take corrective actions.
  
  
  
  Consult with Finance Team:
  
  If the issue persists, consult with your finance or controlling team to ensure that all financial settings and configurations are correct.
  
  
  
  Related Information
  
  
  Transaction Codes: 
  
  MM03 (Display Material Master)
  MM02 (Change Material Master)
  MB5B (Stock on Posting Date)
  MMBE (Stock Overview)
  
  
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  
  
  Documentation: Review SAP documentation related to material valuation and inventory management for best practices and troubleshooting steps.
  
  
  By following these steps, you should be able to identify the cause of the VAL304 error and implement the necessary solutions to resolve it.