How To Fix 64213 - The issue premium is greater than the reinvestment discount

SAP Error Message - Details

• Message type: E = Error

• Message class: 64 - Treasury Management: Securities

• Message number: 213

• Message text: The issue premium is greater than the reinvestment discount

What causes this issue?

The percentage value of the issuing premium in the basic data is larger
than the reinvestment discount.

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?

Enter a smaller value.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message 64213 - The issue premium is greater than the reinvestment discount ?

  The SAP error message 64213, which states "The issue premium is greater than the reinvestment discount," typically occurs in the context of financial transactions involving bonds or other securities. This error indicates that the premium (the amount by which the issue price of a bond exceeds its face value) is greater than the reinvestment discount (the discount applied to the reinvestment of cash flows from the bond).
  Cause:
  
  Incorrect Pricing: The issue price of the bond may have been set incorrectly, leading to a premium that exceeds the expected reinvestment discount.
  Market Conditions: Changes in interest rates or market conditions may have affected the expected reinvestment rates, leading to discrepancies.
  Configuration Issues: There may be configuration issues in the SAP system related to the financial instruments or the valuation methods being used.
  Data Entry Errors: Manual entry errors in the bond issuance or pricing details can lead to this mismatch.
  
  Solution:
  
  Review Pricing Details: Check the issue price and ensure that it is correctly set. Compare it with the market rates and the expected reinvestment rates.
  Adjust Parameters: If the reinvestment discount is incorrectly set, adjust the parameters to reflect the correct market conditions.
  Re-evaluate Financial Instruments: Ensure that the financial instruments are configured correctly in the SAP system, including the valuation methods and pricing rules.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling this error in your version of SAP.
  Seek Expert Assistance: If the issue persists, consider consulting with a financial expert or SAP consultant who can provide insights based on your specific configuration and business processes.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates and patches.
  Transaction Codes: Familiarize yourself with transaction codes related to bond issuance and pricing in SAP, such as transaction codes for financial instruments (e.g., FTR_CREATE, FTR_EDIT).
  Training and Documentation: Ensure that users involved in financial transactions are adequately trained on the system and understand how to enter and manage bond pricing and related financial data.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the error message 64213 in SAP.