How To Fix THM_EXPOSURE330 - Hedge Accounting: adjustment for item-level test not supported

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 330

• Message text: Hedge Accounting: adjustment for item-level test not supported

What causes this issue?

The exposure is hedged using hedge strategy &v1& with effectiveness
assessment on hedge item level. Currently, the system does not support a
change of the hedge relationship.

System Response

The exposure cannot be reduced if there are hedge relations with item
level assessment.

How to fix this error?

In order to reduce the exposure, dedesignate the existing hedge
relations. It is possible to create new hedge relations after the
exposure is reduced.

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_EXPOSURE330 - Hedge Accounting: adjustment for item-level test not supported ?

  The SAP error message THM_EXPOSURE330 indicates that there is an issue with hedge accounting, specifically related to the item-level test for hedge effectiveness. This error typically arises when the system is unable to perform the necessary adjustments for the hedge accounting due to certain conditions not being met.
  Cause:
  
  
  Item-Level Test Not Supported: The error suggests that the item-level test for hedge effectiveness is not supported for the specific hedge accounting configuration you are using. This can occur if:
  
  The hedge relationship is not properly defined.
  The underlying financial instruments or hedged items do not meet the criteria for item-level testing.
  There are inconsistencies in the data or configuration settings related to the hedging instruments or hedged items.
  
  
  
  Configuration Issues: There may be issues with the configuration of hedge accounting in the system, such as missing settings or incorrect parameters.
  
  
  Data Issues: The data related to the hedged items or hedging instruments may be incomplete or incorrect, leading to the inability to perform the necessary calculations.
  
  
  Solution:
  
  
  Review Hedge Relationship: Check the configuration of the hedge relationship in the system. Ensure that it is set up correctly and that the hedged items and hedging instruments are properly defined.
  
  
  Check Item-Level Test Eligibility: Verify if the hedged items and hedging instruments meet the criteria for item-level testing. If they do not, consider using a portfolio-level test instead.
  
  
  Configuration Settings: Review the configuration settings for hedge accounting in the SAP system. Ensure that all necessary parameters are correctly set up.
  
  
  Data Validation: Validate the data related to the hedged items and hedging instruments. Ensure that all required fields are filled out correctly and that there are no discrepancies.
  
  
  Consult Documentation: Refer to SAP documentation or help notes related to hedge accounting and the specific error message for additional guidance.
  
  
  SAP Support: If the issue persists after checking the above points, consider reaching out to SAP support for further assistance. They may provide specific notes or patches that address the issue.
  
  
  Related Information:
  
  Hedge Accounting: This is a method used in accounting to manage the risk associated with price fluctuations in financial instruments. It involves designating certain financial instruments as hedges against specific risks.
  Hedge Effectiveness Testing: This is a requirement under accounting standards (like IFRS 9 or ASC 815) to ensure that the hedging relationship is effective in offsetting the changes in fair value or cash flows of the hedged item.
  SAP Notes: Check for relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.