How To Fix 67_LOAN607 - Effective interest rate calculation Neg. repayment in simulated cash flow

67_LOAN607 - Overview

• Message type: E = Error

• Message class: 67_LOAN - Messages for Fin. Asset Management for Loans - Continued

• Message number: 607

• Message text: Effective interest rate calculation Neg. repayment in simulated cash flow

What causes this issue?

The cash flow relevant for the calculation of the effective interest
rate is calculated on the basis of a disbursement simulated at the start
of the fixed period in target loan to the amount of the commitment
capital and under the conditions valid during the fixed interest period.
A negative repayment occurs for the loan &v2& in the company code &v1&
in the simulated cash flow. In such a case, the effective interest may
receive a value that is not desirable from a business point of view.

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?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

67_LOAN607 - Details

• The SAP error message 67_LOAN607 indicates an issue with the effective interest rate calculation for a loan, specifically related to negative repayments in a simulated cash flow scenario. This error typically arises in the context of financial transactions involving loans, where the repayment structure may not align with the expected cash flow patterns.
  
  Cause:
  
  Negative Repayment Amounts: The error often occurs when there are negative repayment amounts in the cash flow simulation. This can happen if the repayment schedule includes adjustments or corrections that result in negative values.
  Incorrect Loan Configuration: The loan might be configured incorrectly, leading to unrealistic cash flow scenarios that the system cannot process.
  Data Entry Errors: Manual entry errors in the loan details or repayment schedules can lead to inconsistencies in the expected cash flows.
  Interest Rate Issues: If the effective interest rate is not set correctly or if there are changes in the interest rate that are not reflected