How To Fix THM_CENTRAL104 - Calculation with this method is not possible for the hedged item

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 104

• Message text: Calculation with this method is not possible for the hedged item

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message THM_CENTRAL104 - Calculation with this method is not possible for the hedged item ?

  The SAP error message THM_CENTRAL104 indicates that a calculation cannot be performed for a hedged item using the specified method. This error typically arises in the context of hedge accounting within SAP Treasury and Risk Management (TRM) when the system encounters an issue with the hedged item or the hedging relationship.
  Causes:
  
  
  Incompatible Hedging Method: The hedging method selected may not be suitable for the specific hedged item. For example, if the hedged item is a cash flow hedge, but the method selected is for fair value hedges, this error can occur.
  
  
  Missing or Incorrect Data: The hedged item may be missing necessary data or parameters required for the calculation. This could include missing valuation data, incorrect currency settings, or other relevant attributes.
  
  
  Hedging Relationship Issues: There may be issues with the hedging relationship itself, such as it being inactive, not properly defined, or not meeting the criteria for hedge accounting.
  
  
  Valuation Methodology: The valuation method used for the hedged item may not be compatible with the hedging method selected.
  
  
  Configuration Issues: There may be configuration issues in the system settings related to hedge accounting that prevent the calculation from being performed.
  
  
  Solutions:
  
  
  Review Hedging Method: Ensure that the hedging method selected is appropriate for the hedged item. Check the documentation for the specific hedging methods and their requirements.
  
  
  Check Data Completeness: Verify that all necessary data for the hedged item is complete and accurate. This includes checking the valuation data, currency settings, and any other relevant parameters.
  
  
  Validate Hedging Relationship: Ensure that the hedging relationship is correctly defined and active. Check if it meets the criteria for hedge accounting and is properly linked to the hedged item.
  
  
  Adjust Valuation Method: If the valuation method is causing the issue, consider changing it to one that is compatible with the hedging method.
  
  
  Consult Configuration Settings: Review the configuration settings in the SAP system related to hedge accounting. Ensure that they are set up correctly and align with the business requirements.
  
  
  SAP Notes and Support: Check for any relevant SAP Notes that may address this specific error. If the issue persists, consider reaching out to SAP support for further assistance.
  
  
  Related Information:
  
  SAP Documentation: Refer to the official SAP documentation for Treasury and Risk Management for detailed information on hedge accounting and the specific methods available.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to hedge accounting, such as transaction codes for managing hedging relationships and valuations.
  User Forums and Communities: Engage with SAP user communities and forums where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to identify the root cause of the THM_CENTRAL104 error and implement an appropriate solution.