How To Fix TPM_THX1281 - 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: 281

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

What causes this issue?

Selected effectivenees test method uses Basis Point Shift logic for
market data calculation during prospective test. This logic is allowed
only for selected scenarios namely 150, 710 and 720.

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_THX1281 - Effectiveness test method &1 is not correct for the given scenario. ?

  The SAP error message TPM_THX1281 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. This error typically arises when the effectiveness test method defined for a hedge accounting relationship does not align with the requirements of the specific scenario being processed.
  Cause:
  
  Incorrect Effectiveness Test Method: The effectiveness test method specified may not be appropriate for the type of hedging relationship or the financial instruments involved.
  Configuration Issues: There may be configuration settings in the system that do not match the requirements for the effectiveness test.
  Data Inconsistencies: The data related to the hedging relationship or the financial instruments may be incomplete or incorrect.
  Regulatory Compliance: The effectiveness test method may not comply with the relevant accounting standards (e.g., IFRS or GAAP) for the specific scenario.
  
  Solution:
  
  Review Effectiveness Test Method: Check the effectiveness test method assigned to the hedging relationship. Ensure that it is appropriate for the type of hedge (e.g., fair value hedge, cash flow hedge).
  Configuration Check: Go to the configuration settings in the SAP system (Transaction SPRO) and verify the settings for hedge accounting. Ensure that the effectiveness test methods are correctly defined and aligned with the business requirements.
  Data Validation: Validate the data associated with the hedging relationship. Ensure that all necessary fields are filled out correctly and that the financial instruments are set up properly.
  Consult Documentation: Refer to SAP documentation or help resources for guidance on the specific effectiveness test methods and their requirements.
  Testing: If changes are made, perform testing to ensure that the error does not reoccur and that the effectiveness test is functioning as expected.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  Hedge Accounting: Familiarize yourself with the principles of hedge accounting and the different effectiveness test methods available in SAP.
  Training and Support: Consider reaching out to SAP support or consulting with a specialist in Treasury and Risk Management for further assistance.
  
  By following these steps, you should be able to identify the root cause of the TPM_THX1281 error and implement the necessary changes to resolve it.