How To Fix T8211 - Loan contract is used in a forward loan purchase. NPV becomes zero.

SAP Error Message - Details

• Message type: E = Error

• Message class: T8 - Analysis system evaluations

• Message number: 211

• Message text: Loan contract is used in a forward loan purchase. NPV becomes zero.

What causes this issue?

The evaluation date is before the <ZK>Start Date </>of the loans
contract . The loans contract attached to a forward loan purchase has
its value only after loan start date and before the end term of the
contract.
Before the start date of a loan, the forward loan purchase attached will
be active and will have value. Hence NPV of the loan shows zero when
the contract is evaluated before the start date of the loan.

System Response

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

How to fix this error?

When the loans contract is to be evaluated before the loan start date,
then the forward loan attached to the loan should be reversed and the
indicator for forward loan attachment should be unchecked.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message T8211 - Loan contract is used in a forward loan purchase. NPV becomes zero. ?

  The SAP error message T8211, which states "Loan contract is used in a forward loan purchase. NPV becomes zero," typically occurs in the context of financial transactions involving loan contracts and forward loan purchases in SAP's Treasury and Risk Management module. This error indicates that there is an issue with the net present value (NPV) calculation for a loan contract that is being used in a forward loan purchase scenario.
  Cause:
  
  Loan Contract Configuration: The loan contract may not be properly configured or may have missing or incorrect data that affects the NPV calculation.
  Forward Loan Purchase Setup: The forward loan purchase may not be set up correctly, leading to inconsistencies in how the loan contract is being utilized.
  Interest Rates: The interest rates used in the calculation may be set to zero or may not be defined correctly, resulting in an NPV of zero.
  Maturity Dates: The maturity dates of the loan contract and the forward loan purchase may not align properly, causing issues in the calculation.
  Currency Issues: If there are currency conversion issues or mismatches, it can lead to incorrect NPV calculations.
  
  Solution:
  
  Check Loan Contract Configuration: Review the loan contract settings in SAP to ensure that all necessary fields are filled out correctly, including interest rates, maturity dates, and any other relevant parameters.
  Verify Forward Loan Purchase Setup: Ensure that the forward loan purchase is set up correctly and that it references the loan contract appropriately.
  Review Interest Rates: Check the interest rates associated with the loan contract and ensure they are set correctly. If they are zero, update them to the correct values.
  Align Maturity Dates: Make sure that the maturity dates of the loan contract and the forward loan purchase are aligned and valid.
  Currency Settings: Verify that the currency settings are correct and that there are no discrepancies in currency conversion that could affect the NPV calculation.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling loan contracts and forward loan purchases.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide patches or updates that could resolve the issue.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing loan contracts and forward loan purchases, such as:
  
  TPM1: Create Loan Contract
  TPM2: Change Loan Contract
  TPM3: Display Loan Contract
  
  
  Testing: After making changes, perform tests to ensure that the NPV calculation is now functioning correctly and that the error message no longer appears.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a financial consultant with expertise in SAP Treasury and Risk Management.