How To Fix FWTR113 - Hedging classification &1 does not match hedge request &3

SAP Error Message - Details

• Message type: E = Error

• Message class: FWTR - Securities Transaction Management

• Message number: 113

• Message text: Hedging classification &1 does not match hedge request &3

What causes this issue?

Hedging classification &V1& was entered or derived. However, hedge
request &V3& has hedging classification &V2&.

System Response

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

How to fix this error?

Check whether the hedging classification entered or the derivation rules
defined in the Customizing activity <LS>Define Derivation of Hedging
Classification</> (transaction <AB>TPM39A</>) are correct.

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 FWTR113 - Hedging classification &1 does not match hedge request &3 ?

  The SAP error message FWTR113 indicates a mismatch between the hedging classification of a financial instrument and the hedge request. This error typically arises in the context of hedge accounting in SAP, where specific classifications and requests must align for proper accounting treatment.
  Cause:
  
  Mismatched Classifications: The hedging classification assigned to the financial instrument does not match the classification expected in the hedge request. This could be due to incorrect settings or configurations in the hedge accounting setup.
  Incorrect Hedge Request: The hedge request may have been created with a different classification than what is assigned to the hedged item or the hedging instrument.
  Data Entry Errors: Manual entry errors during the creation of hedge requests or financial instruments can lead to discrepancies.
  Changes in Configuration: If there have been recent changes in the configuration of hedge accounting settings, it may lead to inconsistencies.
  
  Solution:
  
  Verify Classifications: Check the hedging classification assigned to both the financial instrument and the hedge request. Ensure they match according to the hedge accounting rules.
  Correct Hedge Request: If the hedge request is incorrect, it may need to be modified or recreated to align with the correct hedging classification.
  Review Configuration Settings: Ensure that the configuration settings for hedge accounting in SAP are correctly set up and have not been altered inadvertently.
  Data Validation: Perform a thorough review of the data entries related to the hedging instruments and requests to identify any discrepancies.
  Consult Documentation: Refer to SAP documentation or guidelines on hedge accounting to ensure compliance with the required classifications and processes.
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting is crucial, as it involves specific classifications for hedging relationships, which must be adhered to for compliance with accounting standards.
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedge accounting, such as:
  
  FWZ1: Create Hedge Request
  FWZ2: Change Hedge Request
  FWZ3: Display Hedge Request
  
  
  SAP Notes: Check for any SAP Notes related to FWTR113 for potential bug fixes or updates that may address the issue.
  User Roles and Authorizations: Ensure that the user has the necessary roles and authorizations to create and manage hedge requests and classifications.
  
  By following these steps, you should be able to resolve the FWTR113 error and ensure that your hedge accounting processes are functioning correctly.