How To Fix VAL607 - Negative book values are not allowed for securities

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 607

• Message text: Negative book values are not allowed for securities

What causes this issue?

You wish to carry out a manual valuation for the position on &V1&. To
enable this, book values must have been defined in the system as at
&V1&.
This is a security position for which negative book values have been
defined.

System Response

The valuation is terminated.

How to fix this error?

Define only positive book values for the security positions.

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 VAL607 - Negative book values are not allowed for securities ?

  The SAP error message VAL607 ("Negative book values are not allowed for securities") typically occurs in the context of financial accounting and asset management when dealing with securities in the SAP system. This error indicates that there is an attempt to process a transaction that would result in a negative book value for a security, which is not permissible according to accounting principles.
  Causes:
  
  Incorrect Valuation: The book value of the security may have been incorrectly calculated or recorded, leading to a situation where the value is negative.
  Data Entry Errors: Manual entry errors during transactions, such as incorrect amounts or misclassification of securities.
  Transaction Processing Issues: Issues during the posting of transactions related to securities, such as sales, transfers, or adjustments that do not align with the current book value.
  Market Value Fluctuations: Significant drops in market value that may not have been accounted for properly in the system.
  Configuration Issues: Incorrect configuration settings in the SAP system related to securities management or financial accounting.
  
  Solutions:
  
  Review Transactions: Check the recent transactions related to the security in question. Ensure that all entries are correct and that no erroneous postings have been made.
  Adjust Book Values: If the book value is indeed incorrect, you may need to adjust it through appropriate accounting entries to ensure it reflects the correct value.
  Re-evaluate Valuation Methods: Ensure that the valuation methods used for the securities are appropriate and correctly configured in the system.
  Consult with Finance Team: Work with your finance or accounting team to understand the implications of the error and to determine the best course of action.
  System Configuration Check: Review the configuration settings in the SAP system related to securities and ensure they are set up correctly to prevent negative book values.
  Run Valuation Reports: Use SAP's reporting tools to run valuation reports for securities to identify any discrepancies in values.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message. SAP frequently updates its knowledge base with solutions for common problems.
  Documentation: Refer to SAP documentation on securities management and financial accounting for best practices and guidelines on handling securities.
  User Forums: Engage with SAP user communities or forums where similar issues may have been discussed, and solutions shared.
  
  If the issue persists after following these steps, it may be necessary to escalate the matter to SAP support for further assistance.