How To Fix TEM_MESSAGES_AL120 - Exposure &1 overhedged

SAP Error Message - Details

• Message type: E = Error

• Message class: TEM_MESSAGES_AL - Messages for TEM-AL Layer

• Message number: 120

• Message text: Exposure &1 overhedged

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message TEM_MESSAGES_AL120 - Exposure &1 overhedged ?

  The SAP error message TEM_MESSAGES_AL120 indicates that there is an issue with an exposure being overhedged in the context of Treasury and Risk Management (TRM) within SAP. This typically occurs when the hedging instruments (like derivatives) exceed the underlying exposure they are meant to hedge.
  Cause:
  The error message is triggered when the total amount of hedging instruments exceeds the amount of the underlying exposure. This can happen due to various reasons, such as:
  
  Incorrect Data Entry: The exposure or the hedging instruments may have been incorrectly entered or calculated.
  Market Fluctuations: Changes in market conditions may lead to a situation where the hedging instruments are no longer aligned with the underlying exposure.
  Timing Issues: The timing of transactions may lead to discrepancies between the exposure and the hedging instruments.
  Configuration Issues: There may be issues with the configuration of the hedging strategy or the parameters set in the system.
  
  Solution:
  To resolve the TEM_MESSAGES_AL120 error, you can take the following steps:
  
  
  Review the Exposure and Hedging Instruments:
  
  Check the details of the exposure and the hedging instruments to ensure that they are correctly entered and calculated.
  Verify that the amounts and currencies match.
  
  
  
  Adjust Hedging Instruments:
  
  If the hedging instruments exceed the exposure, consider reducing the amount of the hedging instruments to align with the actual exposure.
  This may involve closing or adjusting existing hedging positions.
  
  
  
  Re-evaluate Hedging Strategy:
  
  Assess the overall hedging strategy to ensure it aligns with the current market conditions and the company's risk management objectives.
  Make necessary adjustments to the strategy if required.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on managing exposures and hedging in your version of SAP.
  
  
  
  Engage with SAP Support:
  
  If the issue persists, consider reaching out to SAP support for assistance. They can provide insights based on the specific configuration and version of your SAP system.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  Training and Documentation: Ensure that users involved in treasury management are adequately trained on the system and understand how to manage exposures and hedging effectively.
  System Configuration: Regularly review and update the configuration settings related to treasury management to ensure they meet the current business needs.
  
  By following these steps, you should be able to identify the cause of the overhedged exposure and take appropriate actions to resolve the issue.