How To Fix TPM_THX1012 - Hedging relationship consists of different types of financial instruments

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_THX1 - Treasury: Message Class for P-HA

• Message number: 012

• Message text: Hedging relationship consists of different types of financial instruments

What causes this issue?

The Hedging Relationship consists of multiple financial instruments as
part of the Hedged Items or Hedging Instruments. These Hedged Items or
Hedging Instruments need to have similar quantities.

System Response

System cannot handle this situation.

How to fix this error?

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

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 TPM_THX1012 - Hedging relationship consists of different types of financial instruments ?

  The SAP error message TPM_THX1012 indicates that there is an issue with the hedging relationship in the Treasury and Risk Management (TRM) module. Specifically, this error arises when the hedging relationship consists of different types of financial instruments, which is not allowed according to the rules governing hedging relationships in SAP.
  Cause:
  The error typically occurs due to one of the following reasons:
  
  Inconsistent Instrument Types: The hedging relationship is defined between instruments that are not compatible. For example, you might be trying to hedge a foreign exchange risk with an interest rate swap, which is not allowed.
  Incorrect Configuration: The configuration settings for the hedging relationship may not be set up correctly, leading to mismatches in the types of instruments being used.
  Data Entry Errors: There may be mistakes in the data entry when defining the hedging relationship, such as selecting the wrong financial instruments.
  
  Solution:
  To resolve the TPM_THX1012 error, you can take the following steps:
  
  
  Review Hedging Relationship:
  
  Go to the hedging relationship definition in SAP and check the types of financial instruments involved.
  Ensure that both the hedged item and the hedging instrument are of compatible types. For example, if you are hedging a foreign currency exposure, ensure that the hedging instrument is also a foreign currency derivative.
  
  
  
  Correct Configuration:
  
  If the configuration settings are incorrect, you may need to adjust them in the customizing settings of the TRM module.
  Check the settings for hedging relationships in the SAP Customizing Implementation Guide (IMG) under Treasury and Risk Management.
  
  
  
  Data Validation:
  
  Validate the data entered for the hedging relationship. Ensure that all fields are filled out correctly and that the selected instruments are appropriate for the type of risk being hedged.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidelines on setting up hedging relationships. This can provide insights into the requirements for compatible financial instruments.
  
  
  
  Seek Expert Assistance:
  
  If the issue persists, consider reaching out to your SAP support team or a consultant with expertise in Treasury and Risk Management for further assistance.
  
  
  
  Related Information:
  
  Hedging Relationships: In SAP, a hedging relationship is a formalized connection between a hedged item (the exposure) and a hedging instrument (the derivative used to mitigate the risk).
  Financial Instruments: Common types of financial instruments include forwards, options, swaps, and futures. Each type has specific characteristics and is used for different types of risk management.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on hedging relationships.
  
  By following these steps, you should be able to identify and correct the issue causing the TPM_THX1012 error in your SAP system.