How To Fix TPM_TRL241 - NPV of the cash flow for loan &1 differs by at least 10%

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_TRL - Messages Class Treasury Ledger

• Message number: 241

• Message text: NPV of the cash flow for loan &1 differs by at least 10%

What causes this issue?

You are managing loan &v1& in a parallel valuation area for which the
position management procedure has the amortization setting "constant
effective interest rate". The cash flow changed between the last
amortization and the key date &v2&. This may have been due to an
unscheduled repayment or changes to the interest rate conditions. On key
date &v2&, the net present value of the new cash flow (&v3&) that was
determined by the constant effective interest rate, differed from the
net present value of the old cash flow (&v4&) by at least 10%

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?

In accordance with IAS/IFSR 39, such a substantial change to the loan
could lead to the contract expiring or being terminated.

Procedure for System Administrators

INCLUDE 'CUSTOMIZED_MESSAGE_INFO' OBJECT DOKU ID TX

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_TRL241 - NPV of the cash flow for loan &1 differs by at least 10% ?

  The SAP error message TPM_TRL241 indicates that there is a significant discrepancy in the Net Present Value (NPV) of the cash flow for a loan. Specifically, it states that the NPV differs by at least 10%. This error typically arises in the context of Treasury and Risk Management (TRM) when dealing with financial instruments such as loans, where the cash flows are expected to be consistent with the defined parameters.
  Cause:
  
  Inconsistent Cash Flow Data: The cash flows associated with the loan may not match the expected values due to incorrect data entry or changes in the underlying assumptions (e.g., interest rates, payment schedules).
  Incorrect Valuation Parameters: The parameters used for calculating the NPV (such as discount rates) may not be set correctly, leading to discrepancies.
  Currency Differences: If the loan is in a different currency than the reporting currency, fluctuations in exchange rates can affect the NPV calculation.
  Changes in Market Conditions: Changes in interest rates or other market conditions can lead to significant changes in the expected cash flows and their present value.
  
  Solution:
  
  Review Cash Flow Data: Check the cash flow data for the loan to ensure that all entries are correct and consistent with the loan agreement.
  Validate Valuation Parameters: Ensure that the discount rates and other parameters used for NPV calculation are accurate and reflect the current market conditions.
  Check Currency Settings: If applicable, verify that currency conversion settings are correct and that the exchange rates used are up to date.
  Recalculate NPV: After making any necessary adjustments, recalculate the NPV to see if the discrepancy is resolved.
  Consult Documentation: Review SAP documentation or consult with your SAP support team for specific guidance related to your configuration and setup.
  
  Related Information:
  
  Transaction Codes: You may need to use specific transaction codes in SAP to access the relevant loan or cash flow data (e.g., TPM1 for loan management).
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  User Exits and Enhancements: If your organization has custom enhancements or user exits, ensure that they are not affecting the cash flow calculations.
  Testing: After making changes, conduct thorough testing to ensure that the issue is resolved and that the NPV calculations are now accurate.
  
  If the problem persists after following these steps, it may be beneficial to engage with SAP support or a consultant who specializes in Treasury and Risk Management to further investigate the issue.