How To Fix T8147 - IRG can only be calculated if fixing <= end of option

SAP Error Message - Details

• Message type: E = Error

• Message class: T8 - Analysis system evaluations

• Message number: 147

• Message text: IRG can only be calculated if fixing <= end of option

What causes this issue?

The fixing date of the underlying is later than the due date of the
option.

System Response

The system can only calculate the classical IRG (Interest Rate
Guarantee), for which the FRA rate is fixed on the due date of the
option or before.

How to fix this error?

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 T8147 - IRG can only be calculated if fixing <= end of option ?

  The SAP error message T8147, which states "IRG can only be calculated if fixing <= end of option," typically occurs in the context of financial instruments, particularly when dealing with interest rate derivatives or options in the SAP Treasury and Risk Management module.
  Cause:
  This error arises when the fixing date (the date on which the interest rate is determined) is later than the end date of the option. In other words, the system is trying to calculate the implied rate for a period that extends beyond the validity of the option. This situation can occur due to:
  
  Incorrect Date Configuration: The fixing date or the option's end date may have been incorrectly configured in the system.
  Data Entry Errors: Manual entry errors when inputting the details of the financial instrument.
  Inconsistent Data: The data for the financial instrument may not be consistent with the expected parameters for calculations.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  Check Dates: Verify the fixing date and the end date of the option. Ensure that the fixing date is on or before the end date of the option.
  Adjust Parameters: If the fixing date is incorrect, adjust it to a valid date that is within the option's validity period.
  Review Configuration: If the dates are set correctly but the error persists, review the configuration settings for the financial instrument in SAP to ensure they align with the expected parameters.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidelines on handling interest rate derivatives and options.
  Test in a Sandbox: If possible, replicate the scenario in a test environment to understand the issue better and validate the changes before applying them in the production environment.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional context.
  Transaction Codes: Familiarize yourself with transaction codes related to Treasury and Risk Management, such as TPM1, TPM2, or TPM3, which are used for managing financial instruments.
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.