How To Fix THM_EXPOSURE165 - Risk class FX is not permitted in individual hedge mode

SAP Error Message - Details

• Message type: E = Error

• Message class: THM_EXPOSURE - E-Hedge Accounting: Exposure

• Message number: 165

• Message text: Risk class FX is not permitted in individual hedge mode

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message THM_EXPOSURE165 - Risk class FX is not permitted in individual hedge mode ?

  The SAP error message THM_EXPOSURE165 indicates that there is an issue with the configuration of risk classes in the context of individual hedge accounting. Specifically, the error states that the risk class "FX" (foreign exchange) is not permitted when using individual hedge mode.
  Cause:
  This error typically arises due to one of the following reasons:
  
  
  Configuration Settings: The risk class "FX" may not be configured to allow individual hedge accounting in the system. This can happen if the settings in the hedge management configuration do not permit FX transactions to be treated as individual hedges.
  
  
  Hedge Accounting Settings: The hedge accounting settings for the specific risk class may not be properly defined. This includes settings related to the types of hedges that can be applied to different risk classes.
  
  
  Transaction Type: The transaction you are trying to process may not be compatible with individual hedge accounting for the FX risk class.
  
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Configuration:
  
  Go to the SAP Customizing Implementation Guide (IMG) and navigate to the hedge management settings.
  Verify the configuration for the risk class "FX" and ensure that it is set up to allow individual hedge accounting.
  
  
  
  Adjust Hedge Accounting Settings:
  
  Review the hedge accounting settings for the FX risk class. Ensure that the settings allow for individual hedges and that the necessary parameters are correctly defined.
  
  
  
  Review Transaction Type:
  
  Ensure that the transaction type you are using is compatible with individual hedge accounting for FX. If it is not, consider using a different transaction type or adjusting the transaction to fit the requirements.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources related to hedge management and risk classes for additional guidance on configuring and troubleshooting hedge accounting issues.
  
  
  
  Contact SAP Support:
  
  If the issue persists after checking the configuration and settings, consider reaching out to SAP support for further assistance. They can provide insights specific to your system configuration and help resolve the issue.
  
  
  
  Related Information:
  
  Hedge Accounting: This is a method used in accounting to manage the risk associated with fluctuations in the value of assets and liabilities. It allows companies to offset potential losses in one area with gains in another.
  Risk Classes: In SAP, risk classes categorize different types of financial risks (e.g., FX, interest rate, commodity) and determine how they are managed and reported.
  Individual Hedge Mode: This mode allows for the accounting of specific hedging relationships on an individual basis, rather than on a portfolio basis.
  
  By following the above steps, you should be able to identify and resolve the issue related to the THM_EXPOSURE165 error message in SAP.