How To Fix TU863 - The new amount for contract &1 cannot be lower than the proposal

SAP Error Message - Details

• Message type: E = Error

• Message class: TU - Billing/Scheduling/Budget Billing

• Message number: 863

• Message text: The new amount for contract &1 cannot be lower than the proposal

What causes this issue?

You want to change the payment plan amount for contract &1. This change
is not permitted since the new amount cannot be lower than or equal to
the proposed amount.

System Response

The transaction is terminated.

How to fix this error?

Enter a new payment plan amount that is equal to or higher than the
current amount.
Enter a reason for changing the amount in the reason code field.
In the Customizing settings for the payment plan (table TE641) deselect
the Reduction of Payment Plan Amount Not Permitted indicator is set.

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 TU863 - The new amount for contract &1 cannot be lower than the proposal ?

  The SAP error message TU863 indicates that there is an issue with a contract amount being set lower than a proposal amount. This typically occurs in the context of contract management or procurement processes within SAP, where a contract is being updated or created, and the new amount specified is less than what was proposed or agreed upon.
  Cause:
  
  Contract Amount Lower than Proposal: The primary cause of this error is that the new amount you are trying to enter for the contract is less than the amount specified in the proposal. This could happen due to data entry errors or incorrect calculations.
  Configuration Settings: There may be specific configuration settings in the SAP system that enforce rules regarding contract amounts and proposals.
  Business Rules: The organization may have business rules that prevent a contract from being modified to an amount lower than the proposal to ensure compliance and financial integrity.
  
  Solution:
  
  Review the Proposal Amount: Check the proposal amount associated with the contract. Ensure that the new amount you are trying to enter is equal to or greater than this amount.
  Adjust the Contract Amount: If the new amount is indeed lower than the proposal, you will need to either:
  
  Increase the new amount to meet or exceed the proposal amount.
  Review the proposal to see if it needs to be adjusted (if applicable and permissible).
  
  
  Consult with Stakeholders: If there is a valid reason for wanting to set the contract amount lower than the proposal, consult with relevant stakeholders (e.g., finance, procurement) to understand if exceptions can be made or if the proposal needs to be renegotiated.
  Check Configuration: If you believe the error is incorrect, check with your SAP administrator or consultant to review the configuration settings related to contract management and proposals.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as ME31K (Create Contract), ME32K (Change Contract), and ME33K (Display Contract) to navigate through contract management.
  Documentation: Refer to SAP documentation or help files for more details on contract management and error messages.
  User Roles: Ensure that you have the appropriate permissions to make changes to contracts and proposals in the SAP system.
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  
  By following these steps, you should be able to resolve the TU863 error and proceed with your contract management tasks in SAP.