How To Fix FTR_FORWARDS034 - Forward rate is not equal to sum of spot rate, costs, and interest

SAP Error Message - Details

• Message type: E = Error

• Message class: FTR_FORWARDS - Messages for Forwards and Futures

• Message number: 034

• Message text: Forward rate is not equal to sum of spot rate, costs, and interest

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FTR_FORWARDS034 - Forward rate is not equal to sum of spot rate, costs, and interest ?

  The SAP error message FTR_FORWARDS034 indicates that there is a discrepancy in the forward rate calculation for a financial transaction. Specifically, it states that the forward rate does not equal the sum of the spot rate, costs, and interest. This error typically arises in the context of financial instruments such as forward contracts, swaps, or other derivatives.
  Cause:
  The error can be caused by several factors, including:
  
  Incorrect Spot Rate: The spot rate used in the calculation may be incorrect or outdated.
  Misconfigured Costs: The costs associated with the transaction (such as transaction fees or premiums) may not be correctly configured or entered.
  Interest Rate Mismatch: The interest rates used for the calculation may not align with the expected rates for the currencies or periods involved.
  Data Entry Errors: Manual entry errors in the transaction data can lead to incorrect calculations.
  Currency Mismatches: If the currencies involved in the transaction are not properly aligned, it can lead to discrepancies in the forward rate calculation.
  
  Solution:
  To resolve the error, you can take the following steps:
  
  Verify Spot Rate: Check the spot rate used in the transaction. Ensure it is the most current and accurate rate.
  Review Costs: Examine the costs associated with the transaction. Make sure they are correctly entered and reflect the actual costs.
  Check Interest Rates: Confirm that the interest rates used in the calculation are correct and applicable to the currencies and periods involved.
  Recalculate Forward Rate: Manually calculate the expected forward rate using the formula:
  [
  \text{Forward Rate} = \text{Spot Rate} + \text{Costs} + \text{Interest}
  ]
  Compare this with the rate in the system to identify discrepancies.
  Correct Data Entry: If there are any data entry errors, correct them and reprocess the transaction.
  Consult Documentation: Review SAP documentation or consult with your SAP support team for specific configurations related to forward rate calculations.
  
  Related Information:
  
  Transaction Types: This error is commonly encountered in transactions involving foreign exchange, interest rate swaps, and other derivatives.
  SAP Modules: The error is typically associated with the SAP Treasury and Risk Management (TRM) module.
  Debugging Tools: Use SAP debugging tools or transaction logs to trace the calculations and identify where the discrepancy occurs.
  User Exits and BAdIs: Check if there are any user exits or Business Add-Ins (BAdIs) that might affect the calculation logic.
  
  By following these steps, you should be able to identify and correct the underlying issue causing the FTR_FORWARDS034 error in SAP.