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

RY803 - Overview

• 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: