How To Fix TPM_THX1288 - Critical term match is usually only correct for CFH

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 288

• Message text: Critical term match is usually only correct for CFH

What causes this issue?

The effectiveness test method category (critical term match method) is
only permitted for the cash flow hedging relationship scenario.

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_THX1288 - Critical term match is usually only correct for CFH ?

  The SAP error message TPM_THX1288, which states "Critical term match is usually only correct for CFH," typically occurs in the context of Treasury and Risk Management (TRM) within SAP, particularly when dealing with financial instruments and transactions.
  Cause:
  This error message is often related to the configuration or data setup in the Treasury module, particularly when dealing with cash flow hedges (CFH). The critical term match (CTM) is a method used to assess the effectiveness of hedging relationships. The error suggests that the system has encountered a situation where the critical term match is not applicable or is incorrectly configured for the specific transaction or financial instrument being processed.
  Possible Causes:
  
  Incorrect Configuration: The hedging relationship may not be set up correctly in the system.
  Data Mismatch: There may be discrepancies between the hedged item and the hedging instrument, such as differences in terms, notional amounts, or currencies.
  Inappropriate Use of CTM: The critical term match method may not be suitable for the type of hedging relationship being evaluated.
  
  Solution:
  To resolve this error, consider the following steps:
  
  
  Review Configuration: Check the configuration settings for the hedging relationship in the SAP system. Ensure that the hedged item and the hedging instrument are correctly defined and that the critical term match is appropriate for the relationship.
  
  
  Validate Data: Ensure that all relevant data for the hedged item and the hedging instrument is accurate and consistent. This includes checking the notional amounts, currencies, and other terms.
  
  
  Consult Documentation: Refer to SAP documentation or help resources related to Treasury and Risk Management to understand the requirements for critical term matching and ensure compliance.
  
  
  Use Alternative Methods: If the critical term match is not suitable for the specific hedging relationship, consider using other methods for assessing hedge effectiveness, such as regression analysis or the dollar-offset method.
  
  
  Seek Expert Assistance: If the issue persists, it may be beneficial to consult with an SAP expert or a consultant who specializes in Treasury and Risk Management to get tailored advice and support.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have found.
  Training and Documentation: Consider additional training or resources on SAP Treasury and Risk Management to better understand the configuration and functionality related to hedging.
  
  By following these steps, you should be able to identify the root cause of the TPM_THX1288 error and implement a suitable solution.