How To Fix VAL704 - Swap rate &1 to &2 for exchange rate type &3 must be interpolated

SAP Error Message - Details

• Message type: E = Error

• Message class: VAL - Treasury: Messages for General Valuation

• Message number: 704

• Message text: Swap rate &1 to &2 for exchange rate type &3 must be interpolated

Trados Memory = TR

What causes this issue?

In table AT15, no valid swap rate was found from &1 to &2 with the term
&4 and exchange rate type &3. The swap rate was therefore determined
using linear interpolation.

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?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message VAL704 - Swap rate &1 to &2 for exchange rate type &3 must be interpolated ?

  The SAP error message VAL704 indicates that there is an issue with the swap rate for a specific exchange rate type that needs to be interpolated. This typically occurs in the context of financial transactions, particularly in the valuation of financial instruments where swap rates are used.
  Cause:
  The error arises when the system cannot find a direct swap rate for the specified currency pair and exchange rate type. Instead, it attempts to interpolate the rate based on available data, but it fails to do so. This can happen due to several reasons:
  
  Missing Data: The required swap rates for the specified currencies and exchange rate type are not maintained in the system.
  Incorrect Configuration: The configuration for the exchange rate type or the swap rate settings may be incorrect or incomplete.
  Date Issues: The swap rates may not be available for the specific date being processed, leading to interpolation failure.
  Currency Pair: The currency pair may not be supported for the specified exchange rate type.
  
  Solution:
  To resolve the VAL704 error, you can take the following steps:
  
  
  Check Swap Rate Data:
  
  Go to the transaction code for maintaining exchange rates (e.g., OB08) and verify that the swap rates for the specified currency pair and exchange rate type are correctly maintained.
  Ensure that the rates are available for the date in question.
  
  
  
  Review Configuration:
  
  Check the configuration settings for the exchange rate type in the system. Ensure that the settings are correct and that the necessary parameters for interpolation are set up properly.
  
  
  
  Maintain Missing Rates:
  
  If the required swap rates are missing, you may need to manually enter them or ensure that they are imported from a reliable source.
  
  
  
  Check Date Validity:
  
  Ensure that the date for which the swap rate is being requested is valid and that the rates are available for that date.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for any specific notes or updates related to this error message.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test to see if the error persists. If it does, further investigation may be required.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OB08 (Maintain Exchange Rates), and others related to financial instruments and valuation.
  SAP Notes: Check for any SAP Notes related to VAL704 for additional insights or patches that may address the issue.
  Support: If the problem persists after following the above steps, consider reaching out to SAP support for further assistance.
  
  By following these steps, you should be able to identify and resolve the cause of the VAL704 error in your SAP system.