How To Fix TEM_MESSAGES_AL412 - It does not make sense to have a hedging ratio greater than 100%

TEM_MESSAGES_AL412 - Overview

• Message type: E = Error

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

• Message number: 412

• Message text: It does not make sense to have a hedging ratio greater than 100%

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 TEM_MESSAGES_AL412 - It does not make sense to have a hedging ratio greater than 100% ?

  The SAP error message TEM_MESSAGES_AL412 indicates that there is an issue with the hedging ratio in a financial transaction or configuration within the SAP system. Specifically, it states that a hedging ratio greater than 100% does not make sense, as it implies that the hedging position exceeds the underlying exposure.
  
  Cause:
  
  Incorrect Data Entry: The hedging ratio may have been incorrectly entered or calculated, leading to a value greater than 100%.
  
  Configuration Issues: There may be a misconfiguration in the hedging settings or parameters within the SAP system.
  Underlying Exposure Miscalculation: The underlying exposure that the hedge is meant to cover may have been miscalculated, leading to an inflated hedging ratio.
  System Bugs or Limitations: In some cases, there may be bugs or limitations in the version of SAP being used that could lead to this error.
  
  
  Solution:
  
  Review Hedging Ratio: Check the hedging ratio entered in the transaction. Ensure that it is correctly calculated and does