How To Fix THM_CENTRAL008 - Derivative valuation date &1 is greater than hedging relationship date &2

SAP Error Message - Details

• Message type: E = Error

• Message class: THM_CENTRAL - Central messages for E-HA

• Message number: 008

• Message text: Derivative valuation date &1 is greater than hedging relationship date &2

What causes this issue?

The current valuation date &V1& is greater than the inception date &V2&
of the hedging relationship.
This is prohibited.
If the derivative has been valued prior to the creation or change of a
hedging relationship the inception date of the hedging relationship
must be greater than or equal to the current valuation date.

System Response

Process stopped.

How to fix this error?

Please reverse the current valuation of the derivative or choose a
different derivative or change the inception date of the hedging
relationship.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message THM_CENTRAL008 - Derivative valuation date &1 is greater than hedging relationship date &2 ?

  The SAP error message THM_CENTRAL008 indicates that there is a discrepancy between the derivative valuation date and the hedging relationship date in the context of hedge accounting. Specifically, the error states that the derivative valuation date is greater than the hedging relationship date, which is not allowed.
  Cause:
  This error typically arises in the following scenarios:
  
  Incorrect Date Configuration: The valuation date for the derivative is set to a date that is later than the start date of the hedging relationship.
  Data Entry Error: When entering or processing transactions, the dates may have been incorrectly inputted.
  Timing Issues: The valuation of derivatives should occur within the timeframe of the hedging relationship. If the valuation date exceeds the hedging relationship's effective date, this error will occur.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Dates: Verify the dates associated with both the derivative and the hedging relationship. Ensure that the derivative valuation date is not later than the hedging relationship date.
  
  
  Adjust Valuation Date: If the valuation date is incorrect, adjust it to a date that is on or before the hedging relationship date.
  
  
  Review Hedging Relationship: Ensure that the hedging relationship is correctly defined and that its start date is accurate. If necessary, modify the hedging relationship to align with the correct dates.
  
  
  Consult Documentation: Review SAP documentation or help resources for specific guidance on managing hedging relationships and derivatives.
  
  
  Test in a Sandbox: If you are unsure about making changes, consider testing the adjustments in a sandbox environment to ensure that the changes do not have unintended consequences.
  
  
  Seek Support: If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert who specializes in treasury and risk management.
  
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting in SAP can help in managing and configuring hedging relationships correctly.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as TPM1, TPM2, or TPM3 for managing hedging relationships and derivatives in SAP.
  
  By following these steps, you should be able to resolve the THM_CENTRAL008 error and ensure that your derivative valuations align correctly with your hedging relationships.