How To Fix VAL507 - Enter an appropriate CVA/DVA type or do not select netting groups

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 507

• Message text: Enter an appropriate CVA/DVA type or do not select netting groups

What causes this issue?

You have set the <LS>Select Netting Groups</> indicator, but you have
entered a CVA/DVA type that ignores the assignment of financial
transactions to netting groups. This parameter combination is not
allowed.

System Response

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

How to fix this error?

If you want to calculate CVA/DVA on the netting group level, set the
<LS>Select Netting Groups</> indicator and enter a CVA/DVA type that
does not ignore the assignment of financial transactions to netting
groups.
If you want to calculate NPVs including CVA/DVA while ignoring the
netting groups, enter a CVA/DVA type that ignores the assignment of
financial transactions to netting groups. In this case, netting groups
are irrelevant, and calculations are performed on the level of
single financial transactions. For this reason, you do not set the
<LS>Select Netting Groups</> indicator.

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 VAL507 - Enter an appropriate CVA/DVA type or do not select netting groups ?

  The SAP error message VAL507, which states "Enter an appropriate CVA/DVA type or do not select netting groups," typically occurs in the context of financial transactions involving Credit Valuation Adjustment (CVA) or Debit Valuation Adjustment (DVA) in SAP's Financial Services module. This error indicates that there is a configuration or data entry issue related to the CVA/DVA types and netting groups.
  Cause:
  
  Missing CVA/DVA Type: The system requires a specific CVA or DVA type to be entered, but it is either missing or incorrectly configured.
  Netting Group Selection: If netting groups are selected, the system expects a valid CVA/DVA type to be associated with those groups. If the CVA/DVA type is not provided, the error will be triggered.
  Configuration Issues: There may be issues in the configuration settings for CVA/DVA types or netting groups in the SAP system.
  Data Entry Errors: Incorrect or incomplete data entry in the transaction that is being processed can also lead to this error.
  
  Solution:
  
  
  Check CVA/DVA Type:
  
  Ensure that a valid CVA or DVA type is entered in the relevant fields of the transaction.
  If you are unsure about the appropriate type, consult your financial or risk management team for guidance.
  
  
  
  Review Netting Group Selection:
  
  If you do not need to use netting groups, consider deselecting them in the transaction.
  If netting groups are necessary, ensure that they are correctly configured and associated with the appropriate CVA/DVA types.
  
  
  
  Configuration Review:
  
  Review the configuration settings for CVA/DVA types and netting groups in the SAP system. This may require access to the configuration settings in the SAP Financial Services module.
  Ensure that all necessary settings are in place and that there are no missing links between CVA/DVA types and netting groups.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on how to configure CVA/DVA types and netting groups.
  Check for any updates or notes from SAP that may address this error.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to ensure that the error is resolved.
  
  
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to financial adjustments and netting groups.
  User Roles: Ensure that you have the appropriate permissions to make changes to CVA/DVA types and netting group configurations.
  
  If the issue persists after following these steps, it may be beneficial to reach out to your SAP support team or a consultant with expertise in SAP Financial Services for further assistance.