How To Fix VAL306 - Short positions are not amortized

VAL306 - Overview

• Message type: E = Error

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

• Message number: 306

• Message text: Short positions are not amortized

What causes this issue?

You want to execute the valuation step amortization for a negative
position.

System Response

Amortization cannot be executed for a negative position. The valuation
step is left out during the key date valuation for this position.

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 VAL306 - Short positions are not amortized ?

  The SAP error message VAL306 ("Short positions are not amortized") typically occurs in the context of asset accounting or financial transactions involving short positions in securities or financial instruments. This error indicates that the system is attempting to amortize a short position, which is not allowed.
  
  Cause:
  
  Short Position Definition: A short position refers to a situation where an investor borrows a security and sells it, expecting to buy it back later at a lower price. In accounting terms, short positions are not treated the same way as long positions (where the asset is owned).
  Amortization Process: Amortization usually applies to long-term assets or investments that are being depreciated over time. Since short positions do not represent ownership of an asset, they cannot be amortized.
  
  Configuration Issues: There may be configuration settings in the SAP system that incorrectly allow for the amortization of short positions.
  
  
  Solution:
  
  Review Transaction: Check the transaction that triggered the error. Ensure