How To Fix THM_CENTRAL112 - Different hedge strategies for hedged item &1 in valuation area &2

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 112

• Message text: Different hedge strategies for hedged item &1 in valuation area &2

What causes this issue?

Hedged item &V1& relates to hedging relationships with different hedge
strategies.

System Response

The effectiveness will only be calculated at the level of hedging
relationships.

How to fix this error?

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

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message THM_CENTRAL112 - Different hedge strategies for hedged item &1 in valuation area &2 ?

  The SAP error message THM_CENTRAL112 indicates that there are different hedge strategies defined for a hedged item in a specific valuation area. This typically occurs in the context of hedge accounting within SAP Treasury and Risk Management (TRM).
  Cause:
  The error arises when the system detects that the hedged item (e.g., a financial instrument or a forecasted transaction) has been assigned multiple hedge strategies that are inconsistent with each other. This can happen due to:
  
  Multiple Hedge Strategies: The hedged item is linked to different hedge strategies in the system, which can lead to confusion during valuation.
  Configuration Issues: There may be a misconfiguration in the hedge accounting settings, where the same hedged item is incorrectly associated with different strategies.
  Data Entry Errors: Manual errors during the setup of hedging relationships or during the assignment of hedge strategies.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Review Hedge Strategies: Check the hedge strategies assigned to the hedged item in the valuation area. Ensure that only one consistent hedge strategy is assigned.
  
  
  Adjust Configuration: If there are multiple strategies due to configuration issues, you may need to adjust the settings in the Customizing (SPRO) for Treasury and Risk Management. Ensure that the hedge strategies are correctly defined and that they align with the hedged items.
  
  
  Data Correction: If the issue is due to data entry errors, correct the assignments in the system. This may involve removing or reassigning hedge strategies to ensure consistency.
  
  
  Consult Documentation: Refer to SAP documentation or help notes related to hedge accounting and the specific error message for additional guidance.
  
  
  Testing: After making changes, perform a test valuation to ensure that the error does not reoccur and that the hedged item is now correctly valued.
  
  
  Seek Support: If the issue persists, consider reaching out to SAP support or consulting with a specialist in SAP Treasury and Risk Management for further assistance.
  
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting and how hedge strategies are defined and applied in SAP can help in troubleshooting similar issues.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional insights into hedge strategy configurations.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedge accounting, such as transaction codes for creating and managing hedging relationships.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.