How To Fix TPM_AD110 - Acc/def method pro rata w. linear discount. is only for Commercial Paper

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_AD - Treasury: Accrual/Deferral of Profits

• Message number: 110

• Message text: Acc/def method pro rata w. linear discount. is only for Commercial Paper

What causes this issue?

The accrual/deferral method <ZK>"pro rata with linear discounting"</> is
only available for Commercial Paper. You use this method to execute
accrual/deferral for a position that does not belong to a Commercial
Paper.

System Response

The system has not executed accrual/deferral for the position.

How to fix this error?

Change the accrual/deferral settings in Customizing.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_AD110 - Acc/def method pro rata w. linear discount. is only for Commercial Paper ?

  The SAP error message TPM_AD110 indicates that the accounting and default method for pro-rata with linear discounting is only applicable for Commercial Paper transactions. This error typically arises in the context of Treasury and Risk Management (TRM) when dealing with financial instruments.
  Cause:
  The error occurs when you attempt to apply a pro-rata accounting method with a linear discount to a financial instrument that is not classified as Commercial Paper. The system is designed to enforce specific accounting methods based on the type of financial instrument being processed.
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check the Financial Instrument Type: Ensure that the financial instrument you are working with is indeed a Commercial Paper. If it is not, you will need to use a different accounting method that is appropriate for the type of instrument you are dealing with.
  
  
  Adjust Accounting Method: If the instrument is not Commercial Paper, you may need to change the accounting method in the transaction settings. Look for alternative methods that are compatible with the type of financial instrument you are processing.
  
  
  Review Configuration Settings: If you believe that the instrument should be treated as Commercial Paper, check the configuration settings in your SAP system. Ensure that the instrument type is correctly defined and that the relevant settings for accounting methods are properly configured.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for detailed information on the accounting methods available for different financial instruments. This can provide insights into which methods are applicable and how to configure them.
  
  
  Seek Support: If you are unable to resolve the issue, consider reaching out to your SAP support team or consulting with an SAP expert who specializes in Treasury and Risk Management.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on handling accounting methods for financial instruments.
  Transaction Codes: Familiarize yourself with transaction codes related to Treasury and Risk Management, as they may help you navigate the system more effectively.
  Training and Documentation: Consider undergoing training or reviewing documentation related to Treasury and Risk Management in SAP to better understand the functionalities and limitations of different accounting methods.
  
  By following these steps, you should be able to address the TPM_AD110 error and ensure that your financial transactions are processed correctly within SAP.