How To Fix VAL404 - Index valuation terminated, since impairment created for position

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 404

• Message text: Index valuation terminated, since impairment created for position

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message VAL404 - Index valuation terminated, since impairment created for position ?

  The SAP error message VAL404 indicates that the index valuation process has been terminated due to the presence of an impairment for a specific position. This error typically arises in the context of asset accounting or investment management within SAP, where the system is trying to perform a valuation but encounters an issue because an impairment has been recorded.
  Cause:
  
  Impairment Exists: The primary cause of this error is that there is an impairment recorded for the asset or position in question. An impairment indicates that the carrying amount of the asset exceeds its recoverable amount, and this needs to be addressed before proceeding with the valuation.
  Valuation Process: The valuation process in SAP requires that all positions be in a state that allows for valuation. If there are impairments, the system will halt the process to prevent incorrect valuations.
  
  Solution:
  
  Review Impairment Entries: Check the impairment entries for the affected asset or position. Ensure that they are correctly recorded and reflect the current status of the asset.
  Adjust Impairment: If the impairment is no longer valid or needs adjustment, you may need to reverse or adjust the impairment entry. This can be done through the appropriate transaction codes in SAP (e.g., using transaction code AB08 for reversing an asset impairment).
  Re-run Valuation: After addressing the impairment, re-run the index valuation process. This can typically be done through the transaction code for index valuation (e.g., transaction code ABV1 for index valuation).
  Consult Documentation: Refer to SAP documentation or your organization's internal guidelines for handling impairments and valuations to ensure compliance with accounting standards.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  AB01: Asset acquisition
  AB02: Asset transfer
  AB08: Reverse asset transaction
  ABV1: Index valuation
  
  
  SAP Notes: Check for any SAP Notes related to VAL404 for additional guidance or patches that may address known issues.
  Consult with Finance Team: If you are unsure about how to handle the impairment or valuation, consult with your finance or accounting team for assistance.
  Training and Documentation: Ensure that users involved in asset management are trained on how to handle impairments and valuations in SAP to prevent similar issues in the future.
  
  By following these steps, you should be able to resolve the VAL404 error and successfully complete the index valuation process.