How To Fix THM_EXPOSURE172 - Nominal, currency and single hedge only permitted for interest rate risk

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 172

• Message text: Nominal, currency and single hedge only permitted for interest rate risk

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message THM_EXPOSURE172 - Nominal, currency and single hedge only permitted for interest rate risk ?

  The SAP error message THM_EXPOSURE172 indicates that there is an issue related to the configuration of hedging instruments in the context of interest rate risk management. Specifically, this error arises when there is an attempt to use a hedge that is not compatible with the nominal, currency, and single hedge requirements for interest rate risk.
  Cause:
  The error typically occurs due to one or more of the following reasons:
  
  
  Incorrect Hedge Type: The hedge type being used may not be appropriate for the interest rate risk exposure. For example, if a hedge is set up for foreign exchange risk or commodity risk, it will not be valid for interest rate risk.
  
  
  Configuration Issues: The configuration settings in the SAP system for hedging instruments may not be set up correctly. This includes settings related to the hedge accounting, risk categories, or the financial instruments being used.
  
  
  Data Entry Errors: There may be incorrect data entries in the transaction or exposure that do not align with the expected parameters for nominal amounts, currency, or hedge types.
  
  
  Solution:
  To resolve the error, you can take the following steps:
  
  
  Review Hedge Type: Ensure that the hedge type you are using is appropriate for interest rate risk. Check if you are using a nominal hedge, currency hedge, or single hedge as required.
  
  
  Check Configuration: Verify the configuration settings in the SAP system related to hedge accounting and interest rate risk management. Ensure that the settings align with the requirements for the hedging instruments you are using.
  
  
  Validate Data Entries: Review the data entries for the transaction or exposure that triggered the error. Ensure that all required fields are filled out correctly and that the values entered are valid.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidelines on setting up hedges for interest rate risk. This may provide insights into any additional requirements or constraints.
  
  
  Seek Support: If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert who specializes in treasury and risk management. They can provide more tailored assistance based on your specific configuration and business processes.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates and patches that could resolve the issue.
  SAP Community: Engage with the SAP Community forums where other users may have encountered similar issues and can share their solutions.
  Training and Documentation: Consider training sessions or documentation on SAP Treasury and Risk Management (TRM) to better understand the configuration and usage of hedging instruments.
  
  By following these steps, you should be able to identify the root cause of the error and implement the necessary changes to resolve it.