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Former Member
Feb 15, 2007 at 09:34 AM

Calculating the Internal Rate of Return on an investment


Hi everybody,

I'm building a planning application for a client of mine, and part of constists of calculating the IRR on an investment. I'm trying to do so with the standard planning function for calculating the IRR, but I must be doing something wrong as I'm only receiving error messages back, especially error message UPB141:

"No unique internal interest rate could be determined for the payment series entered because of numerical problems"

My configuration is as follows:

Planning function:

Char. for planning item: gl_account

Key figs f. revenues/expdts: 0amount

Key figure for percentage: bps_irr

Time-based characteristic: fiscal year

Characteristic for start year: bps_irr_from

Characteristic for final year: bps_irr_to

Parameter group:

Item for cash flow: 8001 to 8001

Pos. for internal interest rat: 9999

My data series:

2008 8001 2008 2008 -10.000,00 EUR

2009 8001 2009 2009 5.000,00 EUR

2010 8001 2010 2010 6.000,00 EUR

In Excel, the above data series leads to an IRR of 6%, which in my opinion is correct. In BPS I'm only receiving the previously mentioned error message.

Is there anybody who has successfully used this planning function and who can tell me what I'm doing wrong? Otherwise a link to SAP documentation on this function would also be much appreciated.

Thanks in advance,