How To Fix THMHR_ADMIN012 - Swap &1 in company code &2 can only hedge interest rate risk

SAP Error Message - Details

• Message type: E = Error

• Message class: THMHR_ADMIN - Messages for managing hedge relationships

• Message number: 012

• Message text: Swap &1 in company code &2 can only hedge interest rate risk

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_ADMIN012 - Swap &1 in company code &2 can only hedge interest rate risk ?

  The SAP error message THMHR_ADMIN012 indicates that a specific swap transaction in a given company code can only be used to hedge interest rate risk. This error typically arises in the context of financial instruments and hedging strategies within SAP Treasury and Risk Management (TRM).
  Cause:
  
  Incorrect Configuration: The swap transaction may not be configured correctly to hedge other types of risks (e.g., currency risk) beyond interest rate risk.
  Transaction Type Restrictions: The swap may be defined in such a way that it is limited to hedging interest rate risk only, which could be due to the nature of the financial instrument or the settings in the system.
  Company Code Settings: The company code settings may restrict the types of hedging that can be performed, leading to this error when attempting to hedge a different type of risk.
  
  Solution:
  
  Review Swap Configuration: Check the configuration of the swap transaction in the system. Ensure that it is set up to hedge the desired type of risk. If it is intended to hedge multiple risks, you may need to adjust the settings.
  Transaction Type Review: Verify the transaction type associated with the swap. If it is indeed meant to hedge only interest rate risk, you may need to create a new transaction type that allows for hedging of other risks.
  Company Code Settings: Review the settings for the company code in question. Ensure that the hedging strategy aligns with the company’s risk management policies and that the system is configured to allow for the desired hedging activities.
  Consult Documentation: Refer to SAP documentation or consult with your SAP support team for specific guidance on configuring swaps and hedging strategies within your version of SAP.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional context on configuring swaps and hedging in SAP TRM.
  Training and Documentation: Consider reviewing training materials or documentation related to SAP Treasury and Risk Management to better understand how to configure and manage financial instruments.
  Consult with Experts: If the issue persists, it may be beneficial to consult with SAP experts or financial analysts who specialize in treasury management to ensure compliance with financial regulations and best practices.
  
  By addressing the configuration and settings related to the swap transaction, you should be able to resolve the error and proceed with your hedging activities.