How To Fix THMHR_ADMIN010 - Derivative &1, company code &2 cannot be used to hedge interest rate risk

SAP Error Message - Details

• Message type: E = Error

• Message class: THMHR_ADMIN - Messages for managing hedge relationships

• Message number: 010

• Message text: Derivative &1, company code &2 cannot be used to hedge interest rate risk

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

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Smart SAP Assistant

• What is the cause and solution for SAP error message THMHR_ADMIN010 - Derivative &1, company code &2 cannot be used to hedge interest rate risk ?

  The SAP error message THMHR_ADMIN010 indicates that a specific derivative (identified by &1) for a particular company code (identified by &2) cannot be used to hedge interest rate risk. This error typically arises in the context of Treasury and Risk Management (TRM) within SAP, particularly when dealing with financial instruments used for hedging purposes.
  Causes:
  
  
  Incorrect Configuration: The derivative may not be properly configured in the system to be used for hedging interest rate risks. This could be due to missing settings or incorrect parameters in the derivative's master data.
  
  
  Incompatible Derivative Type: The type of derivative being used may not be suitable for hedging interest rate risks. For example, certain derivatives are designed for currency hedging rather than interest rate hedging.
  
  
  Company Code Settings: The company code may not be set up to allow the use of that specific derivative for hedging purposes. This could involve settings related to risk management or financial instruments.
  
  
  Hedging Relationship Not Established: There may not be a valid hedging relationship established between the derivative and the underlying exposure that it is intended to hedge.
  
  
  Regulatory or Compliance Issues: There may be regulatory restrictions or compliance issues that prevent the use of the derivative for hedging interest rate risk.
  
  
  Solutions:
  
  
  Check Derivative Configuration: Review the configuration of the derivative in the system. Ensure that it is set up correctly for interest rate hedging. This includes checking the product type and ensuring it is compatible with interest rate risk.
  
  
  Review Company Code Settings: Verify the settings for the company code in question. Ensure that it is authorized to use the specified derivative for hedging.
  
  
  Establish Hedging Relationship: If a hedging relationship has not been established, create one between the derivative and the underlying exposure. This is essential for the derivative to be recognized as a valid hedge.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on the error message and the configuration of derivatives in the context of interest rate risk.
  
  
  Engage with SAP Support: If the issue persists after checking the above points, consider reaching out to SAP support for assistance. They can provide insights based on the specific configuration and version of your SAP system.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error message or provide updates related to Treasury and Risk Management.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing derivatives and hedging relationships, such as:
  
  TPM1: Create Hedging Relationship
  TPM2: Change Hedging Relationship
  TPM3: Display Hedging Relationship
  
  
  Training and Documentation: Consider training sessions or documentation on Treasury and Risk Management in SAP to better understand the configuration and management of derivatives.
  
  By following these steps, you should be able to identify the root cause of the error and implement the necessary solutions to resolve it.