How To Fix THM_CENTRAL105 - No hypothetical derivative entered for hedging relationship &1 &2 &3

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 105

• Message text: No hypothetical derivative entered for hedging relationship &1 &2 &3

What causes this issue?

No hypothetical derivative has been maintained for the hedging
relationship & & &

System Response

The calculation cannot proceed.

How to fix this error?

Create a hypothetical derivative, and reference this derivative in the
hedging relationship maintenance screen of <LS>Hedge Accounting for
Exposures</>.

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_CENTRAL105 - No hypothetical derivative entered for hedging relationship &1 &2 &3 ?

  The SAP error message THM_CENTRAL105 indicates that there is no hypothetical derivative entered for a hedging relationship in the Treasury Management module. This error typically arises when you are trying to perform a transaction or report that requires a hypothetical derivative to be defined for a specific hedging relationship.
  Cause:
  
  Missing Hypothetical Derivative: The primary cause of this error is that the hypothetical derivative has not been defined for the specified hedging relationship. A hypothetical derivative is often used in hedge accounting to assess the effectiveness of a hedging relationship.
  Incorrect Configuration: There may be an issue with the configuration of the hedging relationship or the associated financial instruments.
  Data Entry Error: There could be a mistake in the data entry when setting up the hedging relationship.
  
  Solution:
  
  
  Define Hypothetical Derivative:
  
  Navigate to the relevant transaction in SAP where you can define or maintain the hedging relationship.
  Ensure that a hypothetical derivative is created and linked to the hedging relationship in question.
  You can typically do this in the transaction code TPM1 (for creating a hedging relationship) or TPM2 (for changing it).
  
  
  
  Check Configuration:
  
  Review the configuration settings for the hedging relationship to ensure that all necessary parameters are correctly set.
  Ensure that the financial instruments involved in the hedging relationship are properly configured.
  
  
  
  Review Documentation:
  
  Consult the SAP documentation or help files related to Treasury Management and hedge accounting for specific steps on how to set up hypothetical derivatives.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to ensure that the error is resolved.
  
  
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting is crucial, as it involves complex rules and regulations that govern how hedging relationships are documented and reported.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on configuring hedging relationships and hypothetical derivatives.
  User Roles and Authorizations: Ensure that the user has the necessary authorizations to create or modify hedging relationships and hypothetical derivatives.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a consultant specializing in SAP Treasury Management for further assistance.