How To Fix TPM_THX1282 - 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: 282

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

What causes this issue?

The selected effectiveness test method uses market data &V2& logic for
market data calculation during prospective effectiveness testing. This
logic is allowed only for selected scenarios, namely 110, 120, 130, 150
and 710.

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_THX1282 - Effectiveness test method &1 is not correct for the given scenario. ?

  The SAP error message TPM_THX1282 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 or financial instrument 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 hedge or financial instrument being used. For example, certain methods may only be applicable to specific types of hedges (e.g., cash flow hedges vs. fair value hedges).
  Configuration Issues: There may be configuration settings in the system that do not match the requirements for the effectiveness test method.
  Missing or Incorrect Data: Required data for the effectiveness test may be missing or incorrectly entered, leading to the error.
  Version Compatibility: The version of the SAP system or the specific module may have limitations or bugs that affect the effectiveness test methods.
  
  Solution:
  
  Review Effectiveness Test Method: Check the effectiveness test method assigned to the hedge or financial instrument. Ensure that it is appropriate for the scenario you are working with.
  Configuration Check: Go to the configuration settings in the SAP system (Transaction SPRO) and verify that the settings for effectiveness testing are correctly defined. This includes checking the settings for hedge accounting and the specific methods available.
  Data Validation: Ensure that all required data for the effectiveness test is correctly entered and complete. This includes checking the parameters and settings related to the financial instruments.
  Consult Documentation: Refer to SAP documentation or help resources for guidance on the specific effectiveness test methods and their applicability.
  SAP Notes and Support: Check for any relevant SAP Notes that may address this error or provide updates or patches that could resolve the issue. If necessary, contact SAP support for assistance.
  
  Related Information:
  
  Effectiveness Testing: This is a process used to assess whether a hedge is effective in offsetting changes in the fair value or cash flows of the hedged item. Different methods (e.g., regression analysis, dollar-offset method) may be used depending on the type of hedge.
  Hedge Accounting: Understanding the principles of hedge accounting and the requirements for effectiveness testing is crucial for compliance with accounting standards (e.g., IFRS 9, ASC 815).
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing financial instruments and hedge accounting, such as TPM1 (Hedge Management) and TPM2 (Hedge Accounting).
  
  By following these steps and understanding the context of the error, you should be able to resolve the TPM_THX1282 error effectively.