How To Fix AO216 - Error when calculating the internal rate of return

SAP Error Message - Details

• Message type: E = Error

• Message class: AO - Appropriation requests - Master data / Customizing

• Message number: 216

• Message text: Error when calculating the internal rate of return

What causes this issue?

An error occurred during calculation of the internal rate of return.
Possible causes are:
Evaluation type does not exist.
Yield curve type does not exist.
Reference interest rates are not maintained.

How to fix this error?

Check these Customizing settings.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message AO216 - Error when calculating the internal rate of return ?

  The SAP error message AO216, which indicates an error when calculating the internal rate of return (IRR), typically arises in the context of financial calculations within SAP systems, particularly in Asset Accounting or Investment Management modules. Here are some common causes, potential solutions, and related information regarding this error:
  Causes of AO216 Error
  
  
  Data Issues: The error may occur due to missing or incorrect data in the investment or asset records. This could include missing cash flow entries, incorrect dates, or invalid amounts.
  
  
  Calculation Parameters: The parameters set for the IRR calculation may not be appropriate. For example, if the cash flows are not structured correctly or if there are too many negative cash flows, the calculation may fail.
  
  
  System Configuration: There may be configuration issues in the SAP system that affect how IRR is calculated. This could include settings related to the financial management module.
  
  
  Technical Issues: There could be underlying technical issues, such as problems with the database or the application server, that prevent the calculation from being completed.
  
  
  Solutions to AO216 Error
  
  
  Check Data Integrity: Review the investment or asset records for completeness and accuracy. Ensure that all necessary cash flow entries are present and correctly formatted.
  
  
  Review Cash Flow Structure: Ensure that the cash flows are structured correctly. For IRR calculations, there should be a mix of positive and negative cash flows, and they should be in chronological order.
  
  
  Adjust Calculation Parameters: If applicable, review and adjust the parameters used for the IRR calculation. This may involve changing the method of calculation or the time periods considered.
  
  
  Consult Configuration Settings: Check the configuration settings in the SAP system related to financial calculations. Ensure that they are set up correctly for your organization's requirements.
  
  
  System Logs and Traces: Review system logs and traces for any additional error messages or warnings that may provide more context about the issue.
  
  
  SAP Notes and Support: Check the SAP Support Portal for any relevant SAP Notes that may address this specific error. There may be patches or updates available that resolve known issues.
  
  
  Technical Support: If the issue persists, consider reaching out to your SAP technical support team or consulting with SAP experts who can provide deeper insights into the problem.
  
  
  Related Information
  
  
  IRR Calculation: The internal rate of return is a financial metric used to evaluate the profitability of an investment. It is the discount rate that makes the net present value (NPV) of all cash flows from the investment equal to zero.
  
  
  SAP Modules: This error is often encountered in modules like Asset Accounting (FI-AA) or Investment Management (IM), where financial calculations are critical.
  
  
  Documentation: Refer to SAP documentation for detailed information on how IRR is calculated and the requirements for successful calculations.
  
  
  By addressing the potential causes and implementing the suggested solutions, you should be able to resolve the AO216 error in your SAP system.