How To Fix TE718 - Error while calculating risk-free interest rate (&)

SAP Error Message - Details

• Message type: E = Error

• Message class: TE - Market Risk Management

• Message number: 718

• Message text: Error while calculating risk-free interest rate (&)

What causes this issue?

An error occurred when the system tried to read the yield curve. The
yield curve provides the basis for calculating the risk-free interest
rate for the residual term of the option.

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

System Response

How to fix this error?

Maintain the yield curve table.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TE718 - Error while calculating risk-free interest rate (&) ?

  The SAP error message TE718, which indicates "Error while calculating risk-free interest rate (&)," typically arises in the context of financial calculations, particularly in modules related to treasury and risk management. This error can occur due to various reasons, including configuration issues, missing data, or incorrect settings in the system.
  Causes of TE718 Error
  
  
  Missing or Incorrect Configuration: The risk-free interest rate may not be properly configured in the system. This could include missing entries in the relevant tables or incorrect settings in the financial configuration.
  
  
  Data Issues: The error may arise if the system cannot find the necessary data to calculate the risk-free interest rate. This could be due to missing market data or incorrect parameters.
  
  
  Currency Issues: If the currency settings are not correctly defined or if there are inconsistencies in currency conversion rates, it may lead to this error.
  
  
  Version or Patch Issues: Sometimes, the error can be related to specific versions of SAP or missing patches that address known issues.
  
  
  Solutions to TE718 Error
  
  
  Check Configuration: Review the configuration settings related to interest rates in the SAP system. Ensure that the risk-free interest rate is defined correctly in the relevant configuration areas.
  
  
  Verify Data: Ensure that all necessary data for calculating the risk-free interest rate is available and correctly entered in the system. This includes checking market data and any relevant financial parameters.
  
  
  Currency Settings: Check the currency settings and ensure that all necessary exchange rates are maintained and up to date.
  
  
  Review Logs: Look at the application logs or system logs for more detailed error messages that can provide additional context on what might be causing the issue.
  
  
  Consult Documentation: Refer to SAP documentation or help notes related to the specific module you are working with. There may be specific instructions or known issues documented.
  
  
  Contact SAP Support: If the issue persists after checking the above points, consider reaching out to SAP support for assistance. They may have additional insights or patches available to resolve the issue.
  
  
  Related Information
  
  
  SAP Notes: Check for any relevant SAP Notes that might address this specific error. SAP Notes often contain fixes or workarounds for known issues.
  
  
  Community Forums: Engage with SAP community forums or user groups where similar issues may have been discussed. Other users may have encountered the same error and can provide insights or solutions.
  
  
  Documentation: Review the SAP Help Portal for documentation related to treasury and risk management, as it may provide additional context on how to configure and troubleshoot interest rate calculations.
  
  
  By following these steps, you should be able to identify the cause of the TE718 error and implement a solution to resolve it.