How To Fix TE427 - Low confidence level: CFaR = 0

TE427 - Overview

• Message type: E = Error

• Message class: TE - Market Risk Management

• Message number: 427

• Message text: Low confidence level: CFaR = 0

What causes this issue?

While using the CFaR algorithm 2 (<LS>CFaR Based on Symmetric P&L
Distribution</>), a low confidence level can lead to cases where no
CFaR can be calculated. In such cases, the CFaR is set to 0.

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 TE427 - Low confidence level: CFaR = 0 ?

  The SAP error message TE427, which indicates "Low confidence level: CFaR = 0," typically arises in the context of the SAP system's forecasting and planning functionalities, particularly when dealing with demand planning or supply chain management. This error suggests that the system has calculated a Confidence Factor at Risk (CFaR) of zero, indicating that the forecast is not reliable enough to be used for planning purposes.
  Causes:
  
  
  Insufficient Historical Data: The system may not have enough historical data to generate a reliable forecast. This can happen if the data is sparse or if there are significant gaps in the historical records.
  
  
  Data Quality Issues: Poor quality data, such as incorrect or inconsistent entries, can lead to unreliable forecasts. This includes outliers or anomalies in the data that skew the results.
  
  
  Model Configuration: The forecasting model being used may not be appropriate for the data set. For example, if the model is too complex for