How To Fix THMHR_ADMIN531 - Derivative &1 &2 was assigned to another hedging rel. after dissolution

SAP Error Message - Details

• Message type: E = Error

• Message class: THMHR_ADMIN - Messages for managing hedge relationships

• Message number: 531

• Message text: Derivative &1 &2 was assigned to another hedging rel. after dissolution

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_ADMIN531 - Derivative &1 &2 was assigned to another hedging rel. after dissolution ?

  The SAP error message THMHR_ADMIN531 indicates that a derivative (financial instrument) has been assigned to another hedging relationship after it was dissolved. This typically occurs in the context of hedge accounting within SAP Treasury and Risk Management (TRM) module, where derivatives are used to hedge against risks associated with financial transactions.
  Cause:
  
  Dissolution of Hedging Relationship: The error arises when a hedging relationship is dissolved, and the associated derivative is then attempted to be reassigned to a different hedging relationship.
  System Constraints: SAP has built-in constraints to prevent the reassignment of derivatives that have already been dissolved from one hedging relationship to another. This is to maintain the integrity of the hedge accounting process and ensure compliance with accounting standards.
  
  Solution:
  
  Check the Status of the Derivative: Verify the status of the derivative in question. If it has been dissolved, it cannot be reassigned to a new hedging relationship.
  Create a New Derivative: If you need to hedge a new relationship, you may need to create a new derivative rather than trying to reassign the dissolved one.
  Review Hedge Accounting Procedures: Ensure that the procedures for dissolving and assigning derivatives are being followed correctly. This may involve reviewing the documentation and processes in place for hedge accounting.
  Consult SAP Documentation: Refer to the SAP Help Portal or relevant documentation for specific guidelines on managing hedging relationships and derivatives.
  Contact SAP Support: If the issue persists or if you believe it is a system error, consider reaching out to SAP support for further assistance.
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting is crucial, as it involves complex regulations and standards (like IFRS 9 or ASC 815) that dictate how derivatives and hedging relationships should be managed.
  SAP TRM Module: Familiarize yourself with the functionalities of the SAP Treasury and Risk Management module, particularly how it handles derivatives and hedging relationships.
  Transaction Codes: Use relevant transaction codes in SAP to check the status of derivatives and hedging relationships (e.g., transaction codes for managing hedging relationships, derivatives, and reporting).
  
  By following these steps and understanding the context of the error, you should be able to resolve the issue effectively.