How To Fix THMHR_ADMIN014 - Option on cap/floor &1, 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: 014

• Message text: Option on cap/floor &1, 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_ADMIN014 - Option on cap/floor &1, company code &2 can only hedge interest rate risk ?

  The SAP error message THMHR_ADMIN014 indicates that there is an issue with the configuration of a hedge transaction related to a cap or floor in the context of interest rate risk management. This error typically arises when the system detects that the specified option (cap or floor) is not set up correctly for the intended use, which is to hedge interest rate risk.
  Cause:
  
  Incorrect Configuration: The cap or floor option may not be configured properly in the system for the specified company code. This could be due to missing settings or incorrect parameters.
  Hedging Type Mismatch: The option may be set up for a different type of risk (e.g., currency risk) rather than interest rate risk, which is what the system expects.
  Company Code Settings: The company code may not be set up to allow for hedging of interest rate risk with the specified option.
  
  Solution:
  
  
  Check Configuration: Review the configuration settings for the cap/floor option in the SAP system. Ensure that it is correctly set up for interest rate risk hedging.
  
  Navigate to the relevant configuration settings in the SAP system (Transaction code: SPRO) and verify the settings for the financial instruments.
  
  
  
  Review Hedging Type: Ensure that the hedging type for the cap/floor option is set to interest rate risk. If it is set incorrectly, you may need to adjust the settings.
  
  
  Company Code Settings: Verify the settings for the company code in question. Ensure that it is configured to allow hedging of interest rate risk.
  
  Check the settings under the company code configuration in the SAP system.
  
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on configuring caps and floors for interest rate risk management.
  
  
  Testing: After making the necessary adjustments, test the transaction again to see if the error persists.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on configuring caps and floors for interest rate risk.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  FTR_EDIT: For editing financial transactions.
  FTR_CREATE: For creating financial transactions.
  
  
  Training and Support: If you are unsure about the configuration, consider reaching out to your SAP support team or consulting with an SAP expert who specializes in treasury and risk management.
  
  By following these steps, you should be able to resolve the error THMHR_ADMIN014 and ensure that your cap/floor options are correctly configured for hedging interest rate risk.