How To Fix THMHR_ADMIN530 - Derivative &1 &2 is assigned too high at start of hedging relationship

THMHR_ADMIN530 - Overview

• Message type: E = Error

• Message class: THMHR_ADMIN - Messages for managing hedge relationships

• Message number: 530

• Message text: Derivative &1 &2 is assigned too high at start of hedging relationship

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_ADMIN530 - Derivative &1 &2 is assigned too high at start of hedging relationship ?

  The SAP error message THMHR_ADMIN530 indicates that a derivative instrument is assigned to a hedging relationship but is considered "too high" at the start of that relationship. This typically means that the fair value or the notional amount of the derivative exceeds the limits set for the hedging relationship, which can lead to compliance issues with accounting standards.
  
  Cause:
  
  Valuation Issues: The derivative's fair value at the start of the hedging relationship may be higher than expected, possibly due to market fluctuations or incorrect valuation inputs.
  Notional Amount: The notional amount of the derivative may exceed the hedged item, which is not permissible under hedge accounting rules.
  Hedge Effectiveness: The derivative may not meet the effectiveness criteria required for hedge accounting, leading to this error.
  
  Configuration Issues: There may be incorrect settings in the hedging relationship configuration or in the valuation of the derivative.
  
  
  Solution:
  
  Review Valuation: Check the fair value of the derivative at the start