How To Fix THMHR_ADMIN011 - Cap/floor &1 in company code &2 can only hedge int. rate risk in cat. CF

SAP Error Message - Details

• Message type: E = Error

• Message class: THMHR_ADMIN - Messages for managing hedge relationships

• Message number: 011

• Message text: Cap/floor &1 in company code &2 can only hedge int. rate risk in cat. CF

What causes this issue?

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

System Response

How to fix this error?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message THMHR_ADMIN011 - Cap/floor &1 in company code &2 can only hedge int. rate risk in cat. CF ?

  The SAP error message THMHR_ADMIN011 indicates that there is an issue with the hedging configuration for a cap or floor in the specified company code. The message states that the cap/floor can only hedge interest rate risk in the category of cash flow (CF). Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  Incorrect Configuration: The cap or floor instrument is not configured correctly in the system to hedge the intended risk type. It may be set up to hedge interest rate risk but is not aligned with the cash flow hedging category.
  Hedging Category Mismatch: The hedging relationship may not be properly defined, leading to a mismatch between the financial instrument and the underlying exposure.
  Company Code Settings: The company code settings may not allow for the hedging of certain types of risks, or the specific financial instruments may not be permitted for the intended hedging strategy.
  
  Solution:
  
  Review Instrument Configuration: Check the configuration of the cap/floor instrument in the SAP system. Ensure that it is set up to hedge the correct type of risk (interest rate risk) and that it is categorized correctly as a cash flow hedge.
  Adjust Hedging Relationship: If the hedging relationship is incorrectly defined, you may need to adjust it. This can involve changing the hedging category or the underlying exposure to ensure they match.
  Consult Documentation: Refer to SAP documentation or guidelines on hedging instruments to ensure compliance with the required settings and configurations.
  Check Company Code Settings: Verify the settings for the company code in question to ensure that it allows for the hedging of interest rate risks and that the necessary configurations are in place.
  Test in a Development Environment: If possible, replicate the issue in a development or test environment to identify the exact configuration causing the error without affecting production data.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on configuring hedging instruments.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  TPM1: For managing treasury management settings.
  TPM2: For managing financial instruments.
  TPM3: For managing hedging relationships.
  
  
  Consult with SAP Support: If the issue persists after checking configurations and settings, consider reaching out to SAP support for further assistance.
  
  By following these steps, you should be able to identify the cause of the error and implement the necessary changes to resolve it.