How To Fix TE093 - Entry &1: Risk-free NPV, NPV, CVA and DVA do not fit together

SAP Error Message - Details

• Message type: E = Error

• Message class: TE - Market Risk Management

• Message number: 093

• Message text: Entry &1: Risk-free NPV, NPV, CVA and DVA do not fit together

What causes this issue?

If you enter a value different from zero for credit value adjustment
(CVA) or debit value adjustment (DVA), then these values must match the
net present value (NPV) and the risk-free net present value (NPV_RF) by
satisfying the equation NPV = NPV_RF - CVA - DVA.

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?

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 TE093 - Entry &1: Risk-free NPV, NPV, CVA and DVA do not fit together ?

  The SAP error message TE093 indicates a mismatch in the financial calculations related to Net Present Value (NPV), Credit Valuation Adjustment (CVA), and Debit Valuation Adjustment (DVA) in the context of risk-free NPV calculations. This error typically arises in the context of financial instruments and risk management within SAP systems, particularly in modules related to Treasury and Risk Management.
  Cause:
  The error message TE093 can occur due to several reasons, including:
  
  
  Data Inconsistency: The values for risk-free NPV, NPV, CVA, and DVA may not be aligned or consistent with each other. This could be due to incorrect data entry or discrepancies in the underlying calculations.
  
  
  Configuration Issues: There may be configuration settings in the SAP system that are not set up correctly, leading to mismatches in the expected financial metrics.
  
  
  Calculation Errors: Errors in the formulas or logic used to calculate NPV, CVA, and DVA can lead to inconsistencies. This could be due to incorrect parameters or assumptions used in the calculations.
  
  
  Versioning Issues: If there are multiple versions of financial instruments or transactions, it may lead to discrepancies in the calculated values.
  
  
  Solution:
  To resolve the TE093 error, you can take the following steps:
  
  
  Check Data Entries: Review the entries for risk-free NPV, NPV, CVA, and DVA to ensure they are correct and consistent. Look for any discrepancies in the values.
  
  
  Review Configuration: Ensure that the configuration settings in the SAP system for Treasury and Risk Management are correctly set up. This includes checking the settings for valuation methods and risk management parameters.
  
  
  Validate Calculations: Go through the calculations for NPV, CVA, and DVA to ensure that they are being computed correctly. Verify that the formulas and parameters used are appropriate for the financial instruments in question.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on the TE093 error. This may provide insights into common causes and solutions.
  
  
  Engage with SAP Support: If the issue persists, consider reaching out to SAP support for assistance. They can provide more detailed troubleshooting based on your specific system configuration and data.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates and patches that could resolve the issue.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to Treasury and Risk Management, as they may help in navigating and troubleshooting the issue.
  User Forums: Engage with SAP user communities or forums where similar issues may have been discussed, providing additional insights or solutions.
  
  By following these steps, you should be able to identify and resolve the underlying cause of the TE093 error in your SAP system.