How To Fix THM_CENTRAL250 - Money market transaction & included in more than one hedging relationship

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 250

• Message text: Money market transaction & included in more than one hedging relationship

What causes this issue?

Derivative is included in more than one hedging relationship. The
effectiveness of the derivative cannot be determined.

System Response

The valuation cannot proceed.

How to fix this error?

Please update your hedge plan by removing all but one hedging
relationships.

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_CENTRAL250 - Money market transaction & included in more than one hedging relationship ?

  The SAP error message THM_CENTRAL250 indicates that a money market transaction is included in more than one hedging relationship. This situation typically arises in the context of hedge accounting, where a financial instrument is designated as a hedging instrument for multiple hedged items or relationships, which is not allowed.
  Cause:
  
  Multiple Designations: The same money market transaction has been designated as a hedging instrument for more than one hedged item or relationship.
  Configuration Issues: There may be issues in the configuration of the hedge accounting settings in SAP, leading to incorrect assignments.
  Data Entry Errors: Manual errors during the entry of hedging relationships or transactions can lead to this situation.
  
  Solution:
  
  Review Hedging Relationships: Check the hedging relationships in the system to identify where the money market transaction is being used. Ensure that each transaction is only assigned to one hedging relationship.
  Adjust Assignments: If the transaction is indeed assigned to multiple relationships, you will need to adjust the assignments. This may involve:
  
  Removing the transaction from one of the hedging relationships.
  Creating a new transaction if necessary to maintain the hedging strategy.
  
  
  Consult Documentation: Refer to SAP documentation or guidelines on hedge accounting to ensure compliance with accounting standards and SAP configurations.
  Test Changes: After making adjustments, test the changes in a development or test environment to ensure that the error is resolved and that the hedging relationships function as intended.
  Seek Support: If the issue persists, consider reaching out to SAP support or consulting with a financial expert familiar with SAP hedge accounting.
  
  Related Information:
  
  Hedge Accounting: Understand the principles of hedge accounting, including the requirements for designating hedging instruments and hedged items.
  SAP Configuration: Familiarize yourself with the configuration settings in SAP for hedge accounting, including transaction types, hedging relationships, and risk management settings.
  Documentation: Review SAP notes and documentation related to THM_CENTRAL250 for any specific guidance or updates from SAP.
  
  By addressing the root cause of the error and ensuring proper configuration and assignment of hedging relationships, you can resolve the THM_CENTRAL250 error effectively.