How To Fix FTOE_CORE116 - No hedging classification entered

SAP Error Message - Details

• Message type: E = Error

• Message class: FTOE_CORE -

• Message number: 116

• Message text: No hedging classification entered

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FTOE_CORE116 - No hedging classification entered ?

  The SAP error message FTOE_CORE116: No hedging classification entered typically occurs in the context of financial transactions, particularly when dealing with hedging instruments in SAP Treasury and Risk Management (TRM). This error indicates that a hedging classification has not been specified for a transaction that requires it.
  Cause:
  
  Missing Hedging Classification: The primary cause of this error is that the transaction being processed does not have a hedging classification assigned. Hedging classifications are necessary for the system to understand how the transaction relates to risk management and hedging strategies.
  Configuration Issues: There may be configuration issues in the system where the hedging classifications are not properly set up or linked to the relevant transaction types.
  Data Entry Errors: Users may have overlooked entering the required hedging classification during the transaction entry process.
  
  Solution:
  
  
  Enter Hedging Classification:
  
  Navigate to the transaction where the error occurred.
  Check the fields related to hedging classification and ensure that a valid classification is entered.
  Save the transaction after entering the required information.
  
  
  
  Review Configuration:
  
  If the hedging classification is not available, check the configuration settings in the SAP system.
  Go to the customizing settings (SPRO) and ensure that the hedging classifications are defined correctly under the Treasury and Risk Management settings.
  Ensure that the relevant transaction types are linked to the appropriate hedging classifications.
  
  
  
  User Training:
  
  Provide training to users on the importance of entering hedging classifications and how to do it correctly during transaction entry.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help files for specific guidance on hedging classifications and their importance in the context of your organization's financial processes.
  
  
  
  Related Information:
  
  Hedging Classifications: These are used to categorize financial instruments based on their purpose in risk management. Common classifications include fair value hedges, cash flow hedges, and net investment hedges.
  SAP Notes: Check for any relevant SAP Notes that may address this error or provide additional guidance on hedging classifications.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP TRM, such as:
  
  FTR_CREATE: Create a new financial transaction.
  FTR_EDIT: Edit an existing financial transaction.
  FTR_DISPLAY: Display financial transactions.
  
  
  
  By addressing the missing hedging classification and ensuring proper configuration, you should be able to resolve the FTOE_CORE116 error effectively.