How To Fix VAL608 - The implicit foreign exchange rate was set to 1

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 608

• Message text: The implicit foreign exchange rate was set to 1

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&.
The system determines an implicit foreign exchange rate from the book
values in position and valuation currency. This is not possible in this
case since at least one of the two book values is 0.

System Response

The implicit foreign exchange rate was set to 1.

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 VAL608 - The implicit foreign exchange rate was set to 1 ?

  The SAP error message VAL608, which states "The implicit foreign exchange rate was set to 1," typically occurs in the context of valuation or currency conversion processes within SAP. This error indicates that the system is using a foreign exchange rate of 1 for the conversion, which is often not appropriate for the transaction being processed. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  
  Missing Exchange Rate: The most common cause is that there is no valid exchange rate defined for the currency pair involved in the transaction. This can happen if the exchange rates have not been maintained in the system.
  
  
  Incorrect Configuration: The configuration settings for currency conversion or valuation may not be set up correctly, leading to the system defaulting to an exchange rate of 1.
  
  
  Date Issues: The date for which the exchange rate is being queried may not have a corresponding rate defined. If the date falls outside the range of defined rates, the system may default to 1.
  
  
  Currency Type: The currency type being used may not be supported or may not have a defined exchange rate.
  
  
  Solutions:
  
  
  Maintain Exchange Rates:
  
  Go to the transaction code OB08 (or the relevant transaction for maintaining exchange rates) and ensure that the exchange rates for the relevant currency pair are correctly defined.
  Make sure that the rates are maintained for the correct date range.
  
  
  
  Check Configuration:
  
  Review the configuration settings in the relevant modules (e.g., Financial Accounting, Controlling) to ensure that currency conversion settings are correctly configured.
  Check if the currency types are correctly defined in the system.
  
  
  
  Validate Transaction Dates:
  
  Ensure that the transaction date falls within the range of valid exchange rates. If necessary, update the exchange rates to include the required date.
  
  
  
  Review Currency Settings:
  
  Check the currency settings in the master data (e.g., vendor, customer, material) to ensure that the correct currencies are being used.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on handling currency conversion and valuation issues.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OB08 (Maintain Exchange Rates), OBA1 (Maintain Exchange Rate Types), and others related to currency management.
  SAP Notes: Check for any SAP Notes related to VAL608 for additional insights or patches that may address the issue.
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed, providing insights or solutions from other users' experiences.
  
  By following these steps, you should be able to identify the root cause of the VAL608 error and implement the necessary solutions to resolve it.