How To Fix FVD_MODEL042 - Amount exceeds the absolute maximum loan amount of &1

SAP Error Message - Details

• Message type: E = Error

• Message class: FVD_MODEL - Model Calculation for Consumer Loan

• Message number: 042

• Message text: Amount exceeds the absolute maximum loan amount of &1

What causes this issue?

You have entered a value that exceeds the absolute maximum limit for a
loan that was defined in the product profile settings. Alternatively, a
loan amount was calculated on the basis of the underlying values for the
loan amount, installment or term and, where applicable, the credit life
insurance premium and/or processing charge, which exceeds the absolute
maximum limit for a loan that was defined in the product profile
settings.

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?

Select a loan amount that does not exceed the amount specified in the
short message text.
If the maximum limit for a loan as defined in the product profile
settings is exceeded, but not the absolute maximum limit for a loan, the
system outputs a separate warning message. The loan amount must then be
released in the workflow.

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_MODEL042 - Amount exceeds the absolute maximum loan amount of &1 ?

  The SAP error message FVD_MODEL042 indicates that the amount you are trying to process exceeds the absolute maximum loan amount defined in the system for a specific loan model. This error typically occurs in the context of financial services, particularly in loan processing or credit management within SAP.
  Cause:
  
  Loan Model Configuration: The loan model you are using has a predefined maximum loan amount, which is set in the system configuration. The amount you are trying to enter exceeds this limit.
  Data Entry Error: There may be a mistake in the amount entered, such as an extra digit or incorrect decimal placement.
  Business Rules: The business rules or policies governing loan amounts may have changed, and the amount you are trying to process is no longer permissible.
  
  Solution:
  
  
  Check Loan Model Settings: 
  
  Navigate to the configuration settings for the loan model in SAP. You can do this through the transaction codes related to loan management (e.g., customizing transactions).
  Verify the maximum loan amount set for the model you are using. If necessary, adjust the maximum amount to accommodate the loan you are trying to process, ensuring it aligns with business policies.
  
  
  
  Review Input Amount:
  
  Double-check the amount you are entering. Ensure that it is within the acceptable range and that there are no typographical errors.
  
  
  
  Consult Business Policies:
  
  If the maximum loan amount is correct according to the configuration, consult with your finance or compliance department to understand if there have been any recent changes to the loan policies that might affect the maximum allowable amount.
  
  
  
  Error Handling:
  
  If you believe the amount should be valid, consider reaching out to your SAP support team or system administrator for further investigation. They may need to check for any system issues or updates that could be affecting the loan processing.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes for loan management, such as FVD1 (Create Loan), FVD2 (Change Loan), and FVD3 (Display Loan).
  Documentation: Review SAP documentation or help files related to loan management and configuration for more detailed guidance on setting up loan models and their parameters.
  User Roles: Ensure that you have the appropriate permissions to view and modify loan model settings, as some configurations may be restricted to certain user roles.
  
  By following these steps, you should be able to resolve the error and proceed with your loan processing in SAP.