How To Fix TM108 - Use the "act" days method for average compound interest calculation

SAP Error Message - Details

• Message type: E = Error

• Message class: TM - Messages for FIMA

• Message number: 108

• Message text: Use the "act" days method for average compound interest calculation

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

Unfortunately, there isn't any extra information in this error notice.

What else can you do?

First, use our AnswerBot below to get a possible cause and solution (requires a premium subscription).

Also, review the in-depth Common Questions & Answers listed below; you could discover a solution there or be able to connect with others who have faced similar challenges.

You can also try searching the SAP support portal (support.sap.com) but you need a special user ID to access it. It is possible that an SAP support note exists that provides additional details about the mistake or even steps for fixing it.

Smart SAP Assistant

• What is the cause and solution for SAP error message TM108 - Use the "act" days method for average compound interest calculation ?

  The SAP error message TM108, which states "Use the 'act' days method for average compound interest calculation," typically occurs in the context of Treasury Management (TM) or Financial Supply Chain Management (FSCM) when dealing with interest calculations. This error indicates that the system expects the use of the "actual days" method for calculating average compound interest, but a different method may have been specified or is being used.
  Cause:
  
  Incorrect Interest Calculation Method: The error is triggered when the system is configured to use a different interest calculation method (e.g., "30/360" or "actual/360") instead of the "actual/actual" method, which is required for average compound interest calculations.
  Configuration Settings: The settings in the interest calculation configuration may not align with the requirements for the transaction being processed.
  Transaction Data: The specific transaction or financial instrument may have been set up incorrectly, leading to the mismatch in expected calculation methods.
  
  Solution:
  
  
  Check Configuration:
  
  Navigate to the configuration settings for interest calculation in the SAP system.
  Ensure that the "act" days method (actual/actual) is selected for the relevant financial instruments or transactions that require average compound interest calculations.
  
  
  
  Adjust Transaction Settings:
  
  Review the specific transaction or financial instrument that is causing the error.
  Make sure that the interest calculation method is set to "actual/actual" if it is supposed to use average compound interest.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for detailed guidance on configuring interest calculation methods.
  Check for any specific notes or updates from SAP that may address this error.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to ensure that the error is resolved and that the interest calculations are performed correctly.
  
  
  
  Seek Support:
  
  If the issue persists after checking configurations and transaction settings, consider reaching out to SAP support or your internal SAP team for further assistance.
  
  
  
  Related Information:
  
  Interest Calculation Methods: Familiarize yourself with the different interest calculation methods available in SAP and their implications for financial transactions.
  SAP Notes: Look for relevant SAP Notes that may provide additional insights or fixes related to this error message.
  User Forums: Engage with SAP user communities or forums where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to resolve the TM108 error and ensure that the correct interest calculation method is applied in your SAP system.