How To Fix VAL814 - Recording impairment does not result in a write-down affecting net income

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 814

• Message text: Recording impairment does not result in a write-down affecting net income

What causes this issue?

You want to record an impairment for a position. A write-down affecting
net income is carried out in the process of recording the impairment.
In this case, a write-down affecting net income to the amount of 0 was
calculated on the basis of the impairment rate &V1&.

System Response

Processing is terminated.

How to fix this error?

Check the impairment rate or impairment value defined in the system for
this 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 VAL814 - Recording impairment does not result in a write-down affecting net income ?

  The SAP error message VAL814 indicates that there is a recording impairment that does not lead to a write-down affecting net income. This typically occurs in the context of asset accounting and valuation in SAP, particularly when dealing with fixed assets.
  Cause:
  
  
  Impairment Recording: The error usually arises when an impairment is recorded for an asset, but the system determines that this impairment does not affect the net income. This can happen if the impairment is not recognized as a loss that impacts the profit and loss statement.
  
  
  Asset Valuation Settings: The configuration settings for asset valuation may not be set up correctly. For example, the asset might be classified in a way that does not allow for the impairment to affect net income.
  
  
  Depreciation Methods: The depreciation method applied to the asset may not allow for the recognition of impairment losses in the income statement.
  
  
  Accounting Principles: Depending on the accounting principles being followed (e.g., IFRS, GAAP), certain impairments may not be recognized in the same way, leading to this error.
  
  
  Solution:
  
  
  Review Impairment Entry: Check the impairment entry to ensure that it is correctly recorded. Verify that the impairment amount is appropriate and that it aligns with the asset's current valuation.
  
  
  Check Asset Configuration: Review the asset master data and ensure that the asset is configured correctly. This includes checking the asset class, depreciation area, and any relevant settings that might affect how impairments are treated.
  
  
  Adjust Depreciation Method: If the depreciation method is causing the issue, consider adjusting it to one that allows for the recognition of impairments affecting net income.
  
  
  Consult Accounting Policies: Ensure that the treatment of impairments aligns with the applicable accounting standards. If necessary, consult with your accounting team or a financial advisor to ensure compliance.
  
  
  SAP Notes and Support: Check for any relevant SAP Notes that may address this specific error. SAP frequently updates its software, and there may be patches or updates that resolve this issue.
  
  
  Testing in a Sandbox Environment: If possible, replicate the issue in a test or sandbox environment to better understand the cause and test potential solutions without affecting production data.
  
  
  Related Information:
  
  SAP Asset Accounting (FI-AA): Understanding the asset accounting module in SAP can provide insights into how impairments are handled.
  Documentation: Review SAP documentation related to asset impairments and valuation methods.
  Training: Consider training for users involved in asset management to ensure they understand how to properly record impairments and the implications for financial reporting.
  
  If the issue persists after following these steps, it may be beneficial to reach out to SAP support for further assistance.