How To Fix THM_CENTRAL042 - Financial transaction cannot be assigned to hedging relationship

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 042

• Message text: Financial transaction cannot be assigned to hedging relationship

What causes this issue?

The transaction is not suitable as a hedging instrument for a Net
Investment because the sell side, 'Sales', currency of the transaction
is equivalent to the company code currency, i.e., the foreign subsidary
has the same currency as the company code currency. Therefore it does
not met the criteria for net investment.

System Response

Cannot create hedging relationship.

How to fix this error?

Choose an appropriate financial transaction.

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.