How To Fix THMHR_ADMIN025 - Commodity swap cannot be used as hedging instrument

THMHR_ADMIN025 - Overview

• Message type: E = Error

• Message class: THMHR_ADMIN - Messages for managing hedge relationships

• Message number: 025

• Message text: Commodity swap cannot be used as hedging instrument

What causes this issue?

You have selected a commodity swap with multiple flows as a hedging
instrument.
Currently, we do not support such commodity swaps because we do not
support corresponding exposures.

System Response

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

How to fix this error?

Use commodity swaps with a single exchange date.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

THMHR_ADMIN025 - Details

• The SAP error message THMHR_ADMIN025 indicates that a commodity swap cannot be used as a hedging instrument. This error typically arises in the context of financial transactions involving hedging instruments in SAP Treasury and Risk Management (TRM).
  
  Cause:
  The error can occur due to several reasons, including:
  
  Incorrect Configuration: The commodity swap may not be properly configured in the system to be recognized as a valid hedging instrument.
  Hedging Relationship Issues: The hedging relationship may not be correctly defined or may not meet the criteria set by the accounting standards (e.g., IFRS or GAAP).
  Market Data Issues: There may be missing or incorrect market data that is required for the valuation of the commodity swap.
  Incompatibility: The commodity swap may not be compatible with the underlying exposure or the hedging strategy being applied.
  Regulatory Compliance: The swap may not comply with the regulatory requirements for hedging instruments.
  
  
  Solution:
  To resolve the error, consider the following steps:
  
  
  Check Configuration:
  
  Ensure that the