How To Fix RY026 - Eval. type &1: Credit spread curves not supported for effectiveness tests

SAP Error Message - Details

• Message type: E = Error

• Message class: RY - Messages for RM Basis

• Message number: 026

• Message text: Eval. type &1: Credit spread curves not supported for effectiveness tests

What causes this issue?

You have assigned either a derivation ID for business partners or a
derivation ID for your own companies or both in the <LS>Credit Spread
Curve Derivation</> area on the <LS>Evaluation Control</> tab of the
evaluation type used for the effectiveness test of a hedging
relationship.

System Response

The system does <ZH>not</> support the use of credit spread curves
within effectiveness tests of hedging relationships either for <LS>Hedge
Accounting for Exposures</> (E-HA) or for <LS>Hedge Accounting for
Positions</> (P-HA).
The system did not execute the effectiveness test.

How to fix this error?

Delete your entries in the <LS>Derivation ID for Business Partners</>
field or in the <LS>Derivation ID for Your Own Companies</> field in the
<LS>Credit Spread Curve Derivation</> area on the <LS>Evaluation Control
</> tab of the evaluation type used.
For this purpose, call the
<DS:TRAN.JBREVAL>Define and Set Up Evaluation Type</> function
(transaction <NP>JBREVAL</>).

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message RY026 - Eval. type &1: Credit spread curves not supported for effectiveness tests ?

  The SAP error message RY026, which states "Eval. type &1: Credit spread curves not supported for effectiveness tests," typically occurs in the context of financial instruments and hedging in SAP, particularly when dealing with hedge accounting and effectiveness testing.
  Cause:
  This error message indicates that the evaluation type specified (denoted by &1) is not compatible with the credit spread curves that are being used for effectiveness testing. This can happen for several reasons:
  
  
  Unsupported Evaluation Type: The evaluation type you are using may not support credit spread curves. Certain evaluation types are designed for specific financial instruments or hedging strategies that do not utilize credit spreads.
  
  
  Configuration Issues: There may be a configuration issue in the system where the credit spread curves are not properly defined or linked to the evaluation type.
  
  
  Missing Data: The necessary data for the credit spread curves may be missing or incorrectly set up in the system.
  
  
  Version Compatibility: The version of SAP you are using may have limitations or bugs related to credit spread curves and effectiveness testing.
  
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Evaluation Type: Verify that the evaluation type you are using is appropriate for the financial instruments involved. Consult the SAP documentation or your financial team to ensure that the evaluation type supports credit spread curves.
  
  
  Review Configuration: Check the configuration settings in the SAP system related to credit spread curves and effectiveness testing. Ensure that the curves are correctly defined and linked to the relevant evaluation types.
  
  
  Data Validation: Ensure that all necessary data for the credit spread curves is present and correctly maintained in the system. This includes checking the validity of the curves and their parameters.
  
  
  Consult SAP Notes: Look for any relevant SAP Notes or updates that may address this specific error. SAP frequently releases updates and patches that may resolve known issues.
  
  
  Testing with Different Scenarios: If possible, test the effectiveness of the hedging relationship with different evaluation types or configurations to identify if the issue is specific to a certain setup.
  
  
  Contact SAP Support: If the issue persists after checking the above points, consider reaching out to SAP support for further assistance. They can provide more detailed insights based on your specific system configuration and version.
  
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting and how effectiveness testing works in SAP can provide context for this error.
  Credit Spread Curves: Familiarize yourself with how credit spread curves are defined and used in financial instruments within SAP.
  SAP Financial Modules: This error is often encountered in modules related to Treasury and Risk Management (TRM) or Financial Supply Chain Management (FSCM).
  
  By following these steps, you should be able to identify the root cause of the error and implement a suitable solution.