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

FTR_TEX1032 - Overview

• 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.

FTR_TEX1032 - Details

• 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