How To Fix FTBCVA016 - EE type &1: Initial maturity band recommended for EE calc. meth. CEA

SAP Error Message - Details

• Message type: E = Error

• Message class: FTBCVA - Credit Value Adjustment

• Message number: 016

• Message text: EE type &1: Initial maturity band recommended for EE calc. meth. CEA

What causes this issue?

You have specified a maturity band for an expected exposure type with
the EE calculation method <LS>Constant Exposure Approach</>.
This is not recommended.

System Response

If you leave the <LS>Maturity Band</> field empty, the system considers
an individual time grid for each transaction and netting group.
For single transactions, the time grid consists of the grid points
evaluation date and end of term.
For netting groups, the time grid consists of the evaluation date and
the term ends of all financial transactions in the group.
This results in accurate calculations and reduced data volume and
runtime.

How to fix this error?

Leave the <LS>Maturity Band</> field empty for this calculation method.

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 FTBCVA016 - EE type &1: Initial maturity band recommended for EE calc. meth. CEA ?

  The SAP error message FTBCVA016 typically relates to issues in the configuration of the maturity bands for the calculation of expected earnings (EE) in the context of financial instruments, particularly when using the CEA (Cash Flow Engine) calculation method. This error indicates that the system is unable to determine the initial maturity band for the specified financial instrument.
  Cause:
  
  Missing Configuration: The maturity bands for the financial instrument may not be properly configured in the system. This can happen if the necessary settings for the maturity bands are not defined in the relevant customizing settings.
  Incorrect Calculation Method: The calculation method (CEA in this case) may not be correctly set up to handle the specific financial instrument or transaction type.
  Data Issues: There may be missing or incorrect data related to the financial instrument that prevents the system from determining the appropriate maturity band.
  
  Solution:
  
  
  Check Maturity Band Configuration:
  
  Navigate to the relevant customizing settings in SAP (usually found under Financial Services or Treasury settings).
  Ensure that the maturity bands are defined correctly for the calculation method CEA.
  Verify that the maturity bands cover the range of maturities expected for the financial instruments being processed.
  
  
  
  Review Calculation Method Settings:
  
  Ensure that the calculation method CEA is correctly configured for the financial instruments in question.
  Check if there are any specific settings or parameters that need to be adjusted for the CEA method.
  
  
  
  Validate Data:
  
  Review the data associated with the financial instrument to ensure that all required fields are populated correctly.
  Check for any inconsistencies or missing information that could affect the maturity band determination.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on configuring maturity bands and calculation methods.
  Look for any notes or updates from SAP that may address known issues related to this error message.
  
  
  
  Testing:
  
  After making the necessary adjustments, perform tests to ensure that the error no longer occurs and that the expected earnings calculations are functioning as intended.
  
  
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like SPRO (for customizing) or specific transaction codes related to Treasury and Risk Management to access the relevant settings.
  SAP Notes: Check the SAP Support Portal for any notes related to FTBCVA016 or the CEA calculation method for additional insights or patches.
  Community Forums: Consider reaching out to SAP community forums or user groups for shared experiences and solutions from other users who may have encountered the same issue.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.