How To Fix RY803 - Agreement on interest limit cannot be broken down as an implied option

SAP Error Message - Details

• Message type: E = Error

• Message class: RY - Messages for RM Basis

• Message number: 803

• Message text: Agreement on interest limit cannot be broken down as an implied option

What causes this issue?

The interest limit is outside the value range of the interest rate
formula. This means that the interest limit has no effect.

System Response

The interest limit cannot be broken down as an implied option. The NPV
shown as the result is the NPV of an interest rate instrument that has
no interest limit.

How to fix this error?

Check the conditions of the transaction. The interest limit has to fall
within the value range of the interest rate formula. You define the
value range by entering non-negative values for the interest rate
reference in the interest rate formula.

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 RY803 - Agreement on interest limit cannot be broken down as an implied option ?

  The SAP error message RY803, which states "Agreement on interest limit cannot be broken down as an implied option," typically occurs in the context of financial transactions involving interest rate agreements or derivatives. This error indicates that the system is unable to process the interest limit agreement as it cannot be interpreted as an implied option.
  Cause:
  
  Incorrect Configuration: The interest limit agreement may not be configured correctly in the system. This could involve settings related to the financial instruments or the way the interest limits are defined.
  Data Inconsistencies: There may be inconsistencies in the data entered for the interest limit agreement, such as incorrect parameters or missing information.
  Unsupported Features: The specific financial product or transaction type may not support the breakdown of the interest limit as an implied option.
  Version or Compatibility Issues: The version of SAP being used may have limitations or bugs related to the processing of interest limits.
  
  Solution:
  
  Check Configuration: Review the configuration settings for the interest limit agreement in the SAP system. Ensure that all parameters are set correctly and that the agreement is defined in a way that the system can interpret.
  Validate Data: Go through the data entered for the interest limit agreement. Look for any missing or incorrect entries that could be causing the issue.
  Consult Documentation: Refer to SAP documentation or help resources related to interest limit agreements and implied options. This may provide insights into specific requirements or limitations.
  Update SAP: If you suspect that the issue is related to a bug or limitation in the version of SAP you are using, consider applying any available updates or patches.
  Contact SAP Support: If the issue persists after checking configuration and data, it may be necessary to reach out to SAP support for further assistance. They can provide more detailed troubleshooting based on your specific system setup.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error message or provide guidance on similar issues.
  Transaction Codes: Familiarize yourself with transaction codes related to interest rate agreements and derivatives, such as transaction codes for configuration and reporting.
  User Forums: Engage with SAP user communities or forums where similar issues may have been discussed. Other users may have encountered the same error and can share their solutions.
  
  By following these steps, you should be able to identify the cause of the RY803 error and implement a solution to resolve it.