How To Fix FTBCVA076 - Flow type &1 for the option premium is not set to "Fictitious"

SAP Error Message - Details

• Message type: E = Error

• Message class: FTBCVA - Credit Value Adjustment

• Message number: 076

• Message text: Flow type &1 for the option premium is not set to "Fictitious"

What causes this issue?

According to the settings in the hedge accounting calculation type, the
market value component <LS>NPV Others</> must be calculated for FX
options at the time of designation as the difference between the option
premium and the total NPV. To achieve meaningful results, the flow type
of the option premium must be set to <LS>Fictitious</> as otherwise the
option premium contributes to the total NPV itself.

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?

Check the settings in Customizing for <LS>Treasury and Risk Management
</> under <LS>Basic Analyzer Settings</> -> <LS>Valuation</> -> <LS>Cash
Flow Indicator</> -> <LS>Define Assignment Manually</> and under
<LS>Transaction Manager</> -> <LS>General Settings</> -> <LS>Hedge
Accounting for Positions</> -> <LS>Settings for Automated Designation of
Exposure Items (FX Risk)</> -> <LS>Define Hedge Accounting Calculation
Types</>.

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 FTBCVA076 - Flow type &1 for the option premium is not set to "Fictitious" ?

  The SAP error message FTBCVA076 indicates that there is an issue with the configuration of flow types related to option premiums in the SAP system. Specifically, it states that the flow type for the option premium is not set to "Fictitious." This can occur in the context of financial transactions involving options, where the system expects certain configurations to be in place for proper processing.
  Cause:
  
  Configuration Issue: The flow type associated with the option premium is not configured correctly in the system. The system expects this flow type to be marked as "Fictitious" to handle the accounting entries properly.
  Missing Settings: The necessary settings for the flow type may not have been defined in the Customizing settings of the SAP system.
  Incorrect Transaction Data: The transaction data being processed may reference a flow type that is not set up correctly.
  
  Solution:
  
  
  Check Flow Type Configuration:
  
  Go to the Customizing settings in SAP (Transaction SPRO).
  Navigate to the relevant area for financial instruments or derivatives.
  Check the configuration for flow types and ensure that the flow type for option premiums is set to "Fictitious."
  
  
  
  Adjust Flow Type Settings:
  
  If the flow type is not set to "Fictitious," you will need to modify the settings. This typically involves:
  
  Finding the specific flow type in the configuration.
  Changing the setting to mark it as "Fictitious."
  
  
  
  
  
  Review Transaction Data:
  
  Ensure that the transaction data being processed is correct and that it references the appropriate flow type.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources related to financial instruments and flow types for additional guidance on the correct configuration.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates regarding this error message.
  Transaction Codes: Familiarize yourself with transaction codes related to financial instruments, such as:
  
  FTR_CREATE: Create financial transaction.
  FTR_EDIT: Edit financial transaction.
  FTR_DISPLAY: Display financial transaction.
  
  
  User Roles: Ensure that you have the necessary authorizations to make changes to the configuration settings.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a consultant who specializes in SAP financial modules.