How To Fix FTR_TEX1032 - Predecessor exp. pos. &1 must be transferred to Hedge Accounting first

SAP Error Message - Details

• Message type: E = Error

• Message class: FTR_TEX1 - Messages for raw exposures

• Message number: 032

• Message text: Predecessor exp. pos. &1 must be transferred to Hedge Accounting first

What causes this issue?

The predecessor exposure position has <ZH>not</> been transferred to
Hedge Accounting yet.
or
The predecessor exposure position has already been transferred but has
<ZH>not</> been updated yet. Consequently,
it does <ZH>not</> have the status <LS>Updated</> ('U').

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

System Response

The transfer of the exposure position is not allowed.

How to fix this error?

Transfer the predecessor exposure position first.
(Note: To check the Customizing settings, navigate to <LS>Treasury and
Risk Management -> Transaction Manager -> General Settings -> Exposure
Management 2.0 -> Exposure Lifecycle</>.)

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 FTR_TEX1032 - Predecessor exp. pos. &1 must be transferred to Hedge Accounting first ?

  The SAP error message FTR_TEX1032 indicates that a predecessor exposure position must be transferred to Hedge Accounting before you can proceed with the current transaction. This error typically arises in the context of financial instruments and hedge accounting within SAP's Treasury and Risk Management module.
  Cause:
  The error occurs when you attempt to process a transaction (like a hedge or a derivative) that is dependent on a predecessor exposure position that has not yet been transferred to Hedge Accounting. In other words, the system requires that any exposure that is related to the hedge must first be recognized in the Hedge Accounting framework before you can proceed with the hedge transaction.
  Solution:
  To resolve this error, you should follow these steps:
  
  
  Identify the Predecessor Exposure Position: Check the details of the exposure position indicated by the error message (the &1 placeholder will be replaced with the actual position number). 
  
  
  Transfer the Exposure Position to Hedge Accounting:
  
  Navigate to the Hedge Accounting transaction in SAP.
  Use the appropriate transaction code (e.g., FTR_CREATE or FTR_EDIT) to transfer the predecessor exposure position to Hedge Accounting.
  Ensure that all necessary details and configurations are correctly set up for the hedge accounting process.
  
  
  
  Verify the Transfer: After transferring the exposure position, verify that it has been successfully recorded in Hedge Accounting. You can do this by checking the relevant reports or transaction logs.
  
  
  Retry the Original Transaction: Once the predecessor exposure position has been successfully transferred, you can retry the original transaction that triggered the error.
  
  
  Related Information:
  
  Hedge Accounting: This is a method used to manage the risk associated with financial instruments. It allows companies to match the timing of gains and losses on hedging instruments with the losses and gains on the hedged items.
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedge accounting, such as:
  
  FTR_CREATE: Create a new financial transaction.
  FTR_EDIT: Edit an existing financial transaction.
  FTR_DISPLAY: Display details of financial transactions.
  
  
  Documentation and Support: Refer to SAP Help documentation for detailed guidance on Hedge Accounting and related processes. If issues persist, consider reaching out to your SAP support team or consulting with an SAP expert.
  
  By following these steps, you should be able to resolve the FTR_TEX1032 error and continue with your financial transactions in SAP.