How To Fix FVD_LOCAC700 - Net disbursement amount exceeds the limit for line of cerdit

SAP Error Message - Details

• Message type: E = Error

• Message class: FVD_LOCAC - Messages for Loan Core Account

• Message number: 700

• Message text: Net disbursement amount exceeds the limit for line of cerdit

What causes this issue?

The limit for the line of credit has
been exceeded as a result of the disbursement.

System Response

The system does not activate or post the disbursement but only saves it.

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?

If necessary, reduce the disbursement amount and activate or post the
disbursement again.

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_LOCAC700 - Net disbursement amount exceeds the limit for line of cerdit ?

  The SAP error message FVD_LOCAC700 indicates that the net disbursement amount for a line of credit exceeds the predefined limit. This error typically occurs in the context of financial transactions involving credit lines, where there are restrictions on the maximum amount that can be disbursed.
  Cause:
  
  Exceeding Credit Limit: The primary cause of this error is that the transaction amount exceeds the available limit set for the line of credit.
  Configuration Issues: There may be incorrect configurations in the credit management settings or the specific line of credit settings.
  Data Entry Errors: The amount entered in the transaction may have been incorrectly inputted, leading to an amount that exceeds the limit.
  Changes in Credit Policy: If there have been recent changes to the credit policy or limits, the existing transactions may no longer comply with the new rules.
  
  Solution:
  
  Review Credit Limit: Check the line of credit settings to confirm the maximum allowable disbursement amount. This can be done in the SAP system under the relevant credit management transaction.
  Adjust Transaction Amount: If the transaction amount is indeed too high, consider adjusting it to be within the allowable limit.
  Update Credit Limit: If the business case justifies it, you may need to request an increase in the line of credit limit from the appropriate authority within your organization.
  Check Configuration: Ensure that the configuration settings for credit management are correct and align with your organization’s policies.
  Consult with Finance Team: If you are unsure about the limits or the policies, consult with your finance or credit management team for clarification and guidance.
  
  Related Information:
  
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes such as FD32 (Change Customer Credit Management) or FD33 (Display Customer Credit Management) to review and manage credit limits.
  Documentation: Refer to SAP documentation or help files for detailed information on credit management and error handling.
  User Roles: Ensure that you have the necessary permissions to view and modify credit limits and related settings in the SAP system.
  Audit Trail: Keep an audit trail of any changes made to credit limits or transaction amounts for compliance and review purposes.
  
  By following these steps, you should be able to resolve the error and ensure that future transactions comply with the established credit limits.