How To Fix TPM_THX1020 - Hedged item/hedging instrument position cannot be designated

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 020

• Message text: Hedged item/hedging instrument position cannot be designated

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_THX1020 - Hedged item/hedging instrument position cannot be designated ?

  The SAP error message TPM_THX1020 indicates that there is an issue with the designation of a hedged item or hedging instrument in the context of Treasury and Risk Management (TRM) within SAP. This error typically arises in the context of hedge accounting, where the system is unable to link a hedged item with a hedging instrument due to various reasons.
  Causes of the Error
  
  
  Inconsistent Data: The hedged item and the hedging instrument may not have compatible characteristics, such as currency, maturity date, or valuation methods.
  
  
  Missing Configuration: The necessary configuration for hedge accounting may not be set up correctly in the system. This includes settings related to risk management, valuation, and accounting.
  
  
  Incorrect Assignment: The hedged item or hedging instrument may not be correctly assigned or may not exist in the system.
  
  
  Hedge Relationship Issues: There may be issues with the hedge relationship itself, such as it being inactive or not properly defined.
  
  
  Valuation Issues: The valuation of the hedged item or hedging instrument may not be completed, leading to an inability to designate them.
  
  
  Solutions
  
  
  Check Compatibility: Ensure that the hedged item and hedging instrument are compatible in terms of their characteristics. Verify that they share the same currency, maturity, and valuation methods.
  
  
  Review Configuration: Go through the configuration settings in the SAP system related to hedge accounting. Ensure that all necessary settings are correctly defined.
  
  
  Verify Assignments: Check that the hedged item and hedging instrument are correctly assigned in the system. Make sure that they exist and are active.
  
  
  Examine Hedge Relationships: Review the hedge relationship to ensure it is properly defined and active. If necessary, redefine the hedge relationship.
  
  
  Perform Valuation: Ensure that the hedged item and hedging instrument have been properly valued. If not, perform the necessary valuation steps.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on hedge accounting and the error message TPM_THX1020.
  
  
  Seek Support: If the issue persists, consider reaching out to SAP support or consulting with a professional who specializes in SAP Treasury and Risk Management.
  
  
  Related Information
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedge accounting, such as TPM1 (Hedge Management) and TPM2 (Hedge Accounting).
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to identify the root cause of the TPM_THX1020 error and implement a solution to resolve it.