How To Fix LM163 - Determination procedure &1 does not take global collateral into account

SAP Error Message - Details

• Message type: E = Error

• Message class: LM - Treasury: Limit Management

• Message number: 163

• Message text: Determination procedure &1 does not take global collateral into account

What causes this issue?

You have assigned determination procedure &V1& to the limit type. This
procedure is used for determining country risk, or for determining
counterparty/issuer risks with the risk category "settlement risk". It
does not consider global collateral.
With these settings, it is not feasible to take global collateral into
account.

System Response

The limit type could not be saved with these settings.

How to fix this error?

Change the determination procedure or specify that global collateral
should not be taken into account.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message LM163 - Determination procedure &1 does not take global collateral into account ?

  The SAP error message LM163, which states "Determination procedure &1 does not take global collateral into account," typically occurs in the context of collateral management within SAP's Financial Services module, particularly in the area of loan management or risk management.
  Cause:
  The error indicates that the determination procedure specified (denoted by &1) is not configured to consider global collateral. This can happen for several reasons:
  
  Configuration Issue: The determination procedure may not be set up to include global collateral in its logic.
  Missing Settings: There may be missing settings or parameters in the collateral management configuration that prevent the system from recognizing global collateral.
  Data Inconsistency: There could be inconsistencies in the data related to collateral that are causing the procedure to fail.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Determination Procedure Configuration:
  
  Go to the configuration settings for the determination procedure in SAP.
  Ensure that the procedure is set up to include global collateral. This may involve adjusting the rules or conditions that define how collateral is determined.
  
  
  
  Review Global Collateral Settings:
  
  Verify that the global collateral settings are correctly configured in the system.
  Ensure that all necessary parameters and data related to global collateral are properly maintained.
  
  
  
  Test the Configuration:
  
  After making changes, test the determination procedure to ensure that it now correctly accounts for global collateral.
  Use test cases that involve global collateral to validate the changes.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources related to collateral management and determination procedures for specific guidance on configuration.
  
  
  
  Seek Expert Assistance:
  
  If the issue persists, consider reaching out to an SAP consultant or support team with expertise in collateral management for further assistance.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on configuration.
  Transaction Codes: Familiarize yourself with transaction codes related to collateral management, such as:
  
  SPRO for configuration settings.
  LM01 for loan management.
  
  
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed.
  
  By following these steps, you should be able to identify and resolve the cause of the LM163 error in your SAP system.