How To Fix FVD_LOCAC704 - Gross disbursement amount exceeds the limit in line of credit &1

SAP Error Message - Details

• Message type: E = Error

• Message class: FVD_LOCAC - Messages for Loan Core Account

• Message number: 704

• Message text: Gross disbursement amount exceeds the limit in line of credit &1

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

What causes this issue?

The tolerated
<DS:DE.TB_COMP_TOTAL_CREDIT_LINE>limit</> for the line of credit has
been exceeded as a result of the disbursement.

What causes this issue?

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

What causes this issue?

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

What causes this issue?

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FVD_LOCAC704 - Gross disbursement amount exceeds the limit in line of credit &1 ?

  The SAP error message FVD_LOCAC704 indicates that the gross disbursement amount you are trying to process exceeds the limit set for a specific line of credit. This error typically occurs in the context of financial transactions involving credit lines, such as loans or credit facilities.
  Cause:
  
  Exceeding Credit Limit: The primary cause of this error is that the amount you are attempting to disburse exceeds the maximum allowable limit defined for the line of credit associated with the transaction.
  Configuration Issues: There may be configuration settings in the SAP system that define the limits for various credit lines, which may not be aligned with the intended transaction.
  Incorrect Data Entry: The amount entered for the disbursement may have been incorrectly inputted, leading to an amount that exceeds the limit.
  Changes in Credit Terms: If there have been recent changes to the credit terms or limits, the system may not have been updated accordingly.
  
  Solution:
  
  Verify Credit Limit: Check the line of credit associated with the transaction to confirm the maximum allowable limit. This can usually be done in the credit management module of SAP.
  Adjust Disbursement Amount: If the disbursement amount is indeed too high, consider reducing it to an amount that is within the allowable limit.
  Review Configuration: If you believe the limit should be higher, consult with your financial or SAP configuration team to review and potentially adjust the credit limit settings in the system.
  Check for Data Entry Errors: Ensure that the amount entered is correct and does not contain any typographical errors.
  Consult Documentation: Review any relevant documentation or guidelines regarding the management of credit lines and disbursement processes within your organization.
  
  Related Information:
  
  Transaction Codes: You may need to use specific transaction codes in SAP to view or modify credit limits, such as FD32 (Change Customer Credit Management) or FD33 (Display Customer Credit Management).
  SAP Notes: Check for any SAP Notes related to this error message for additional insights or patches that may address the issue.
  User Roles and Permissions: Ensure that you have the necessary permissions to view and modify credit limits and disbursement amounts in the system.
  Consult with Finance Team: If you are unsure about the limits or the implications of changing them, consult with your finance or credit management team for guidance.
  
  By following these steps, you should be able to resolve the error and proceed with the necessary financial transactions.