How To Fix THMHR_ADMIN016 - FX option &1 in company code &2 can only hedge FX risk

SAP Error Message - Details

• Message type: E = Error

• Message class: THMHR_ADMIN - Messages for managing hedge relationships

• Message number: 016

• Message text: FX option &1 in company code &2 can only hedge FX 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_ADMIN016 - FX option &1 in company code &2 can only hedge FX risk ?

  The SAP error message THMHR_ADMIN016 indicates that there is an issue related to foreign exchange (FX) options in the context of hedging FX risk for a specific company code. This error typically arises when there is an attempt to perform an operation that is not allowed for the specified FX option in the given company code.
  Cause:
  The error message suggests that the FX option you are trying to use is restricted to hedging FX risk only. This could be due to several reasons:
  
  Configuration Settings: The company code may be configured to only allow FX options for hedging purposes, and not for speculative trading or other uses.
  Transaction Type: The transaction type you are trying to execute may not be compatible with the FX option's intended use.
  Master Data Issues: There may be issues with the master data related to the FX option or the company code that restrict its use.
  
  Solution:
  To resolve this error, consider the following steps:
  
  
  Check Configuration: Review the configuration settings for the company code in the SAP system. Ensure that the settings allow for the intended use of FX options.
  
  Navigate to the relevant configuration settings in the SAP system (usually found in the Financials or Treasury modules) and verify the allowed transaction types for FX options.
  
  
  
  Review Transaction Type: Ensure that the transaction you are trying to execute is appropriate for the FX option. If you are trying to use the FX option for purposes other than hedging, you may need to adjust your approach.
  
  
  Master Data Verification: Check the master data for the FX option and the company code. Ensure that all necessary data is correctly maintained and that there are no inconsistencies.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific details about the error message and its implications. This can provide insights into the expected behavior and restrictions related to FX options.
  
  
  Contact Support: If the issue persists after checking the above points, consider reaching out to your SAP support team or consulting with an SAP expert who can provide more tailored assistance based on your specific configuration and business processes.
  
  
  Related Information:
  
  SAP Notes: Look for SAP Notes related to THMHR_ADMIN016 for any patches or updates that may address this issue.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to Treasury and Risk Management, as they may provide additional insights or tools for managing FX options.
  Training and Documentation: Ensure that users involved in managing FX options are adequately trained and have access to documentation that outlines the proper procedures and restrictions.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.