How To Fix FTYC027 - Yield curve &1 in currency &2 contains inconsistent interest rates

SAP Error Message - Details

• Message type: E = Error

• Message class: FTYC - Messages: Yield Curve Framework

• Message number: 027

• Message text: Yield curve &1 in currency &2 contains inconsistent interest rates

What causes this issue?

The interest rates for the yield curve &V1& in currency &V2& on &V3& are
inconsistent. The yield curve could not be fully created, as a discount
factor of <= 0 might have been calculated.

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?

Make sure that the interest rates in the yield curve specified above are
correct and change them if necessary. If the interest rates are correct,
incorrect grid points may have been assigned to the yield curve.

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 FTYC027 - Yield curve &1 in currency &2 contains inconsistent interest rates ?

  The SAP error message FTYC027 indicates that there is an inconsistency in the interest rates defined in a yield curve for a specific currency. This error typically arises in the context of financial applications within SAP, particularly when dealing with interest rate calculations, financial instruments, or treasury management.
  Cause:
  
  Inconsistent Interest Rates: The yield curve may have interest rates that do not follow a logical progression. For example, the rates might increase and then decrease, which is not typical for a yield curve.
  Missing Data: There may be missing interest rate entries for certain maturities, leading to gaps in the curve.
  Incorrect Configuration: The yield curve might be incorrectly configured in the system, leading to inconsistencies.
  Data Entry Errors: Manual entry errors when inputting interest rates can lead to inconsistencies.
  
  Solution:
  
  Review the Yield Curve: Check the yield curve for the specified currency and ensure that the interest rates are logically consistent. The rates should typically increase with longer maturities.
  Correct Inconsistencies: If you find any inconsistencies, correct the interest rates to ensure they follow a proper upward or downward trend.
  Check for Missing Rates: Ensure that all required maturities have corresponding interest rates. If any rates are missing, add them.
  Configuration Review: If the issue persists, review the configuration settings for the yield curve in the SAP system to ensure they are set up correctly.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidelines on setting up yield curves and interest rates.
  Testing: After making corrections, test the yield curve again to ensure that the error message no longer appears.
  
  Related Information:
  
  Transaction Codes: You may need to use transaction codes like TCURV (for yield curves) or FTR_EDIT (for financial transactions) to access and modify yield curves.
  SAP Notes: Check SAP Notes for any known issues or patches related to yield curves and interest rates.
  User Roles: Ensure that you have the necessary permissions to modify yield curves and interest rates in the SAP system.
  Consult with Experts: If you are unable to resolve the issue, consider consulting with a financial expert or SAP consultant who specializes in treasury management or financial instruments.
  
  By following these steps, you should be able to identify and resolve the cause of the FTYC027 error message in SAP.