How To Fix T4148 - The discount formula is problematic for terms longer than one year

T4148 - Overview

• Message type: E = Error

• Message class: T4 - Time deposit processing

• Message number: 148

• Message text: The discount formula is problematic for terms longer than one year

What causes this issue?

The discounting formula used to calculate the NPV may produce incorrect
results for terms over one year, since compound interest is not taken
into account.

Error message extract from SAP system. Copyright SAP SE.

T4148 - Details

• The SAP error message T4148 indicates that there is an issue with the discount formula when dealing with payment terms that extend beyond one year. This error typically arises in the context of financial transactions, particularly when calculating discounts for invoices or payment terms that are set for a duration longer than one year.
  
  Cause:
  The primary cause of this error is that the discount calculation logic in SAP is not designed to handle payment terms that exceed one year. This can occur in scenarios where:
  
  Payment Terms Configuration: The payment terms defined in the system may include discounts that are not applicable for long-term agreements.
  Discount Formula: The formula used to calculate discounts may not account for the complexities involved in longer payment terms, leading to incorrect calculations.
  Master Data Issues: Customer or vendor master data may have payment terms that are incorrectly set or not aligned with the discount policies.
  
  
  Solution:
  To resolve the T4148