How To Fix TE424 - Current NPV is 0. No Value at Risk available.

SAP Error Message - Details

• Message type: E = Error

• Message class: TE - Market Risk Management

• Message number: 424

• Message text: Current NPV is 0. No Value at Risk available.

What causes this issue?

If the current NPV = 0, the divisor in the calculation is zero. For
this reason no value at risk is available.

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?

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TE424 - Current NPV is 0. No Value at Risk available. ?

  The SAP error message TE424, which states "Current NPV is 0. No Value at Risk available," typically occurs in the context of financial transactions or risk management within SAP systems, particularly in modules related to Treasury and Risk Management (TRM).
  Cause:
  
  
  Zero Net Present Value (NPV): The error indicates that the current NPV of the financial transaction or portfolio is zero. This can happen if:
  
  The cash flows associated with the transaction are balanced (i.e., inflows equal outflows).
  There are no cash flows or the cash flows are not properly defined.
  The discount rate used for calculating NPV is not appropriate or is set to zero.
  
  
  
  Data Issues: There may be missing or incorrect data in the transaction or portfolio that prevents the system from calculating a valid NPV.
  
  
  Configuration Issues: The system may not be properly configured to calculate NPV or Value at Risk (VaR) for the specific financial instruments being analyzed.
  
  
  Solution:
  
  
  Check Cash Flows: Review the cash flows associated with the transaction or portfolio. Ensure that they are correctly defined and that there are actual inflows and outflows.
  
  
  Review Discount Rate: Ensure that the discount rate used for NPV calculations is set correctly. A discount rate of zero can lead to an NPV of zero.
  
  
  Data Validation: Validate all relevant data entries in the transaction. Ensure that all necessary fields are filled out correctly and that there are no missing values.
  
  
  Configuration Review: Check the configuration settings in the SAP system related to NPV and VaR calculations. Ensure that the system is set up to handle the specific financial instruments you are working with.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on the error message and the context in which it occurs.
  
  
  Testing: If changes are made, conduct tests to ensure that the NPV and VaR calculations are now functioning correctly.
  
  
  Related Information:
  
  SAP Modules: This error is often encountered in SAP Treasury and Risk Management (TRM) and Financial Accounting (FI) modules.
  Transaction Codes: Familiarize yourself with relevant transaction codes that may be used to analyze or adjust financial transactions (e.g., transaction codes for managing financial instruments).
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message. SAP frequently updates its knowledge base with solutions to common problems.
  
  If the issue persists after following these steps, it may be beneficial to consult with an SAP expert or your organization's SAP support team for further assistance.