How To Fix TPM_THX1280 - Effectiveness test method &1 is not correct for the given scenario.

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 280

• Message text: Effectiveness test method &1 is not correct for the given scenario.

What causes this issue?

Selected effectivenees test method uses MDCR logic for market data
calculation during prospective test. This logic is allowed only for
selected scenarios namely 110, 120 and 130

System Response

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

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 TPM_THX1280 - Effectiveness test method &1 is not correct for the given scenario. ?

  The SAP error message TPM_THX1280 indicates that there is an issue with the effectiveness test method specified in the context of a transaction or process related to Treasury and Risk Management (TRM) or Financial Instruments Management (FIM). This error typically arises when the effectiveness test method assigned to a hedge relationship does not align with the requirements of the specific scenario being processed.
  Cause:
  
  Incorrect Effectiveness Test Method: The effectiveness test method defined in the hedge relationship may not be suitable for the type of financial instrument or the specific scenario being executed.
  Configuration Issues: There may be configuration settings in the system that do not match the requirements for the effectiveness test method.
  Data Inconsistencies: The data associated with the hedge relationship or the financial instruments may be incomplete or incorrect, leading to the error.
  Regulatory Requirements: The effectiveness test method may not comply with the accounting standards or regulatory requirements applicable to the organization.
  
  Solution:
  
  Review Effectiveness Test Method: Check the effectiveness test method assigned to the hedge relationship. Ensure that it is appropriate for the type of hedging and the financial instruments involved.
  Configuration Check: Verify the configuration settings in the SAP system related to Treasury and Risk Management. Ensure that the effectiveness test methods are correctly defined and aligned with the organization's policies.
  Data Validation: Review the data associated with the hedge relationship and the financial instruments. Ensure that all required fields are filled out correctly and that there are no inconsistencies.
  Consult Documentation: Refer to SAP documentation or help resources for guidance on the specific effectiveness test methods and their applicability.
  Engage with SAP Support: If the issue persists, consider reaching out to SAP support for assistance. They can provide insights based on the specific configuration and version of your SAP system.
  
  Related Information:
  
  Effectiveness Testing: This is a process used to assess whether a hedging relationship is effective in offsetting changes in the fair value or cash flows of the hedged item.
  Hedge Accounting: Understanding the principles of hedge accounting and the requirements for effectiveness testing is crucial for compliance with accounting standards such as IFRS or GAAP.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates and patches that could resolve the issue.
  
  By following these steps, you should be able to identify the root cause of the TPM_THX1280 error and implement the necessary corrections to resolve it.