How To Fix THMHR_EVENT115 - Effectiveness could not be determined for hedging relationship &1 &2 &3

SAP Error Message - Details

• Message type: E = Error

• Message class: THMHR_EVENT - Messages for events occuring at valuation

• Message number: 115

• Message text: Effectiveness could not be determined for hedging relationship &1 &2 &3

What causes this issue?

The effectiveness could not be determined for this hedging
relationship.

System Response

The effectiveness calculation cannot continue.

How to fix this error?

There was an error calculating the measurement for this hedging
relationship. Please verify the entries for the hedging relationship,
NPV (if applicable), and configuration.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message THMHR_EVENT115 - Effectiveness could not be determined for hedging relationship &1 &2 &3 ?

  The SAP error message THMHR_EVENT115 indicates that the effectiveness of a hedging relationship could not be determined for a specific hedging relationship identified by the parameters &1, &2, and &3. This error typically arises in the context of hedge accounting within SAP Treasury and Risk Management (TRM) when the system is unable to calculate the effectiveness of a hedging relationship due to missing or incorrect data.
  Causes:
  
  Missing Data: Required data for the hedging relationship may be missing, such as the underlying transaction, hedging instrument, or relevant market data.
  Incorrect Configuration: The hedging relationship may not be properly configured in the system, leading to issues in determining effectiveness.
  Data Inconsistencies: There may be inconsistencies in the data related to the hedging relationship, such as mismatched currencies, notional amounts, or dates.
  Market Data Issues: The system may not have access to the necessary market data to perform the effectiveness test.
  Hedging Relationship Status: The status of the hedging relationship may not allow for effectiveness testing (e.g., it may be inactive or not fully set up).
  
  Solutions:
  
  Check Data Completeness: Ensure that all necessary data for the hedging relationship is complete and accurate. This includes verifying the underlying transaction and hedging instrument details.
  Review Configuration: Check the configuration of the hedging relationship in the system. Ensure that it is set up correctly according to the requirements of hedge accounting.
  Validate Market Data: Ensure that the system has access to the required market data for the effectiveness test. This may involve checking data feeds or market data providers.
  Correct Inconsistencies: Look for any inconsistencies in the data related to the hedging relationship and correct them. This may involve reconciling currencies, notional amounts, and effective dates.
  Check Status: Verify the status of the hedging relationship to ensure it is active and eligible for effectiveness testing.
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting and the requirements for effectiveness testing is crucial. Familiarize yourself with the relevant accounting standards (e.g., IFRS 9 or ASC 815) that govern hedge accounting.
  SAP Documentation: Refer to SAP's official documentation for Treasury and Risk Management for detailed guidance on setting up and managing hedging relationships.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedging relationships, such as:
  
  TPM1: Create Hedging Relationship
  TPM2: Change Hedging Relationship
  TPM3: Display Hedging Relationship
  TPM4: Effectiveness Test
  
  
  
  If the issue persists after checking the above points, it may be beneficial to consult with your SAP support team or a consultant specializing in SAP Treasury and Risk Management for further assistance.