How To Fix VAL402 - Product category &2 is not supported by index valuation

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 402

• Message text: Product category &2 is not supported by index valuation

What causes this issue?

The position is managed according to position management procedure &V1&
.
This position management procedure contains the step 'index valuation'.
However, this step is only appropriate for index-linked bonds.

System Response

The index valuation step does not provide any valuation amount for the
position.

How to fix this error?

Assign an appropriate position management procedure to the position.

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 VAL402 - Product category &2 is not supported by index valuation ?

  The SAP error message VAL402 indicates that the product category specified (represented by &2) is not supported for index valuation in the context of inventory valuation. This typically occurs when trying to perform a valuation or inventory management operation that requires index valuation, but the product category in question is not configured to use this method.
  Cause:
  
  Product Category Configuration: The product category may not be set up to support index valuation in the system. This can happen if the product category is not intended for index-based valuation or if it has been incorrectly configured.
  Valuation Method: The valuation method assigned to the material or product category may not be compatible with index valuation.
  Material Master Settings: The material master record for the product may not have the correct settings for index valuation.
  
  Solution:
  
  
  Check Product Category Settings:
  
  Go to the configuration settings for product categories in SAP (Transaction code: SPRO).
  Navigate to the relevant section for inventory valuation and check if the product category is set up for index valuation.
  
  
  
  Review Material Master:
  
  Use transaction code MM03 to display the material master record for the affected product.
  Check the accounting view and ensure that the valuation class and valuation method are correctly assigned.
  
  
  
  Adjust Valuation Method:
  
  If the product category is not intended for index valuation, consider changing the valuation method to a supported one.
  If index valuation is required, you may need to create a new product category that supports it.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for specific details on how to configure product categories and valuation methods.
  
  
  
  Contact SAP Support:
  
  If the issue persists after checking the configuration, consider reaching out to SAP support for further assistance.
  
  
  
  Related Information:
  
  Transaction Codes: 
  
  MM03 (Display Material Master)
  SPRO (SAP Project Reference Object for configuration)
  
  
  Valuation Methods: Understand the different valuation methods available in SAP (e.g., moving average, standard price, etc.) and their implications on inventory valuation.
  Material Types: Different material types may have different valuation requirements and capabilities, so ensure that the material type aligns with your valuation strategy.
  
  By following these steps, you should be able to identify the cause of the VAL402 error and implement the necessary changes to resolve it.