How To Fix FTR_TEX1406 - Hedge plan &1 &2 not suited for risk category &3

SAP Error Message - Details

• Message type: E = Error

• Message class: FTR_TEX1 - Messages for raw exposures

• Message number: 406

• Message text: Hedge plan &1 &2 not suited for risk category &3

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

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Smart SAP Assistant

• What is the cause and solution for SAP error message FTR_TEX1406 - Hedge plan &1 &2 not suited for risk category &3 ?

  The SAP error message FTR_TEX1406 indicates that a hedge plan is not suitable for the specified risk category. This error typically arises in the context of financial instruments and risk management within SAP, particularly when dealing with hedging transactions.
  Cause:
  The error can occur due to several reasons:
  
  Mismatch in Risk Categories: The hedge plan you are trying to use is not configured to handle the specified risk category. Each hedge plan is associated with specific risk categories, and if there is a mismatch, this error will be triggered.
  Configuration Issues: The hedge plan may not be properly configured in the system to accommodate the risk category you are trying to use.
  Data Entry Errors: There may be an error in the data entry where the risk category is incorrectly specified or does not exist in the system.
  
  Solution:
  To resolve the error, you can take the following steps:
  
  
  Check Hedge Plan Configuration:
  
  Go to the configuration settings for the hedge plan in SAP.
  Verify that the hedge plan is correctly set up for the risk category you are trying to use. You may need to adjust the settings to include the appropriate risk category.
  
  
  
  Review Risk Category Assignment:
  
  Ensure that the risk category assigned to the hedge plan matches the one you are trying to use in your transaction.
  If necessary, create a new hedge plan that includes the required risk category.
  
  
  
  Data Validation:
  
  Double-check the data you are entering to ensure that the risk category is correctly specified and exists in the system.
  Look for any typos or incorrect entries that could lead to this error.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources related to hedge plans and risk categories for additional guidance on configuration and usage.
  
  
  
  Seek Support:
  
  If the issue persists after checking the configuration and data, consider reaching out to your SAP support team or consulting with an SAP expert who can provide further assistance.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to hedge management and risk category configuration (e.g., transaction codes for managing financial instruments).
  SAP Notes: Check for any SAP Notes related to this error message, as they may provide specific fixes or updates that address the issue.
  Training and Documentation: Consider training sessions or documentation on SAP Treasury and Risk Management (TRM) to better understand how hedge plans and risk categories work together.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.