How To Fix VAL870 - Write-off to be posted is smaller than value in loss allowance

VAL870 - Overview

• Message type: E = Error

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

• Message number: 870

• Message text: Write-off to be posted is smaller than value in loss allowance

What causes this issue?

The write-off amount that you want to post is less than the amount in
the loss allowance.
Sample:
There is -1000 EURO in the loss allowance.
After key date valuation, a new write-off for the amount -1500 EUR needs
to be posted, but this is not permitted.

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?

Please calculate a delta amount with a write-off in <AB>TRPAV_WRO_LA_VAL
</> and in the impairment. Please make sure that this delta amount is
greater than the value in the current loss allowance.

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 VAL870 - Write-off to be posted is smaller than value in loss allowance ?

  The SAP error message VAL870 indicates that there is an issue with the write-off amount being smaller than the value in the loss allowance for a specific financial transaction. This typically occurs in the context of accounts receivable or asset management, where a company is trying to write off a portion of a receivable or asset that has been deemed uncollectible or impaired.
  
  Cause:
  
  
  Loss Allowance Configuration: The loss allowance (or provision for bad debts) has been set up with a value that exceeds the amount you are trying to write off. This can happen if the loss allowance was calculated based on historical data or estimates that are higher than the actual write-off amount.
  
  
  Incorrect Write-off Amount: The amount you are attempting to write off may not be sufficient to cover the loss allowance that has been established for that particular account or asset.
  
  
  Accounting Policies: Company policies or accounting standards may dictate