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

LM163 - Overview

• 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.

LM163 - Details

• 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.