How To Fix TPM_THX1275 - End date of hedged item &1 is before hedging instrument end date &2

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 275

• Message text: End date of hedged item &1 is before hedging instrument end date &2

Self-Explanatory Message

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• What is the cause and solution for SAP error message TPM_THX1275 - End date of hedged item &1 is before hedging instrument end date &2 ?

  The SAP error message TPM_THX1275 indicates a mismatch between the end dates of a hedged item and its corresponding hedging instrument. Specifically, it means that the end date of the hedged item is earlier than the end date of the hedging instrument, which is not allowed in the context of hedge accounting.
  Cause:
  
  End Date Mismatch: The primary cause of this error is that the hedged item (e.g., a forecasted transaction or a firm commitment) has an end date that is earlier than the end date of the hedging instrument (e.g., a derivative contract).
  Incorrect Data Entry: This can occur due to incorrect data entry when setting up the hedged item or the hedging instrument.
  Changes in Market Conditions: If the hedging strategy or the underlying exposure changes, it may lead to discrepancies in the end dates.
  
  Solution:
  
  Review End Dates: Check the end dates of both the hedged item and the hedging instrument. Ensure that the end date of the hedged item is equal to or later than the end date of the hedging instrument.
  Adjust Dates: If necessary, adjust the end date of the hedged item to align with the hedging instrument. This may involve changing the hedged item configuration or the hedging instrument.
  Re-evaluate Hedge Relationships: If the hedged item is no longer valid or if the hedging strategy has changed, consider re-evaluating the hedge relationship and making appropriate adjustments.
  Consult Documentation: Refer to SAP documentation or guidelines on hedge accounting to ensure compliance with accounting standards and SAP configurations.
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting is crucial, as it governs how hedging relationships are established and maintained in SAP.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on hedge accounting configurations.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedging instruments and hedged items, such as TPM1 (Hedging Management) and TPM2 (Hedged Item Management).
  Testing: After making adjustments, perform tests to ensure that the error does not recur and that the hedge accounting entries are correctly reflected in the financial statements.
  
  By following these steps, you should be able to resolve the TPM_THX1275 error and ensure that your hedge accounting entries are accurate and compliant.