How To Fix FVD_CNCL062 - Contract &1 to be discharged contains activated or posted payoffs

SAP Error Message - Details

• Message type: E = Error

• Message class: FVD_CNCL - Cancel Loan / Credit Life Insurance

• Message number: 062

• Message text: Contract &1 to be discharged contains activated or posted payoffs

What causes this issue?

You are trying to rescind a contract that replaced another contract.

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

System Response

How to fix this error?

First, reverse the payoff for the discharged contract. Post the
resulting overpayment to the replacement contract.
After you have done this, execute the rescission.

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 FVD_CNCL062 - Contract &1 to be discharged contains activated or posted payoffs ?

  The SAP error message FVD_CNCL062 indicates that a contract (identified by &1) cannot be discharged because it contains activated or posted payoffs. This typically occurs in the context of financial contracts or leasing agreements managed within the SAP system, particularly in the Financial Services (FS) module.
  Cause:
  The error arises when you attempt to discharge (or close) a contract that has associated payoffs that have already been activated or posted. Payoffs are typically payments made against the contract, and if they are in an active or posted state, the system prevents the discharge to maintain data integrity and ensure that all financial transactions related to the contract are properly accounted for.
  Solution:
  To resolve this error, you can follow these steps:
  
  
  Check Payoff Status: Review the contract to identify any payoffs that are activated or posted. You can do this by navigating to the contract details in the SAP system and checking the associated transactions.
  
  
  Reverse or Adjust Payoffs: If the payoffs are not needed or were posted in error, you may need to reverse or adjust them. This can typically be done through the relevant transaction codes in SAP, such as:
  
  FVD1: For creating payoffs.
  FVD2: For changing payoffs.
  FVD3: For displaying payoffs.
  FVD4: For reversing payoffs.
  
  
  
  Discharge the Contract: Once all payoffs are either reversed or adjusted, you can attempt to discharge the contract again. Use the appropriate transaction code (e.g., FVD_CONTRACT) to perform the discharge.
  
  
  Consult Documentation: If you are unsure about the process or the implications of reversing payoffs, consult the SAP documentation or your organization's financial policies.
  
  
  Seek Help from SAP Support: If the issue persists or if you encounter complications, consider reaching out to your SAP support team or consulting SAP Notes for any specific patches or updates related to this error.
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with the relevant transaction codes for managing contracts and payoffs in SAP.
  SAP Notes: Check for any SAP Notes that might address this specific error or provide additional guidance.
  User Roles and Permissions: Ensure that you have the necessary permissions to make changes to contracts and payoffs in the system.
  Testing in a Sandbox Environment: If possible, test the discharge process in a sandbox environment to avoid impacting live data.
  
  By following these steps, you should be able to resolve the FVD_CNCL062 error and successfully discharge the contract.