How To Fix FVD_LOCAC702 - Gross disbursement amount exceeds the limit for LOC &1: Save only

SAP Error Message - Details

• Message type: E = Error

• Message class: FVD_LOCAC - Messages for Loan Core Account

• Message number: 702

• Message text: Gross disbursement amount exceeds the limit for LOC &1: Save only

What causes this issue?

The gross disbursement amount exceeds the limit of the line of credit.

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

System Response

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

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_LOCAC702 - Gross disbursement amount exceeds the limit for LOC &1: Save only ?

  The SAP error message FVD_LOCAC702 indicates that the gross disbursement amount exceeds the limit set for a specific line of credit (LOC) in the system. This error typically occurs in the context of financial transactions, particularly in the area of credit management or loan disbursements.
  Cause:
  
  Exceeding Credit Limit: The primary cause of this error is that the amount you are trying to disburse exceeds the predefined limit for the line of credit associated with the transaction.
  Configuration Settings: The limits for disbursements may be configured in the system based on business rules, risk assessments, or regulatory requirements.
  Incorrect Data Entry: There may be a possibility of incorrect data entry, where the amount entered is higher than intended.
  
  Solution:
  
  Review the Credit Limit: Check the line of credit settings in the SAP system to confirm the maximum allowable disbursement amount. This can usually be found in the credit management or loan management module.
  Adjust the Disbursement Amount: If the disbursement amount is indeed higher than the limit, you will need to adjust it to comply with the set limits.
  Request Limit Increase: If the disbursement amount is justified and should exceed the current limit, you may need to request an increase in the credit limit from the relevant authority or department within your organization.
  Check Configuration: If you believe the limit is set incorrectly, consult with your SAP administrator or the finance team to review the configuration settings for the line of credit.
  Error Handling: If this error occurs frequently, consider implementing error handling procedures or alerts to notify users when they are approaching the limit.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to credit management, such as FD32 (Change Customer Credit Management) or FBL5N (Customer Line Item Display).
  Documentation: Refer to SAP documentation or help files for detailed information on credit management and disbursement processes.
  User Roles: Ensure that users have the appropriate roles and permissions to view and modify credit limits and disbursement amounts.
  Audit Trail: Keep an audit trail of changes made to credit limits and disbursement amounts for compliance and review purposes.
  
  By following these steps, you should be able to resolve the error and ensure that your disbursement processes comply with the established limits.