How To Fix TPM_THX1293 - Critical term match method is not supported for retrospective test

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 293

• Message text: Critical term match method is not supported for retrospective test

What causes this issue?

Critical term match method is not supported for Retrospective test.

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_THX1293 - Critical term match method is not supported for retrospective test ?

  The SAP error message TPM_THX1293, which states "Critical term match method is not supported for retrospective test," typically occurs in the context of Treasury and Risk Management (TRM) within SAP, particularly when dealing with hedge accounting or financial instruments.
  Cause:
  This error usually arises when you are trying to perform a retrospective test for hedge effectiveness using a critical term match method that is not supported by the system. The critical term match method is a specific approach to assess hedge effectiveness based on matching the critical terms of the hedging instrument and the hedged item. However, this method may not be applicable in certain scenarios, especially when the hedging relationship does not meet the necessary criteria for retrospective testing.
  Solution:
  To resolve this error, consider the following steps:
  
  
  Review Hedge Effectiveness Testing Method:
  
  Ensure that the method you are using for hedge effectiveness testing is appropriate for the type of hedging relationship you have established. If the critical term match method is not suitable, you may need to switch to a different method, such as regression analysis or the dollar-offset method.
  
  
  
  Check Configuration Settings:
  
  Verify the configuration settings in your SAP system related to hedge accounting. Ensure that the settings for the critical term match method are correctly configured and that the system supports the retrospective testing for the specific hedging relationship.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help notes related to hedge accounting and the specific error message. This can provide insights into the limitations of the critical term match method and alternative approaches.
  
  
  
  Update SAP Notes:
  
  Check for any relevant SAP Notes that may address this issue. Sometimes, SAP releases updates or patches that can resolve specific errors or enhance functionality.
  
  
  
  Engage with SAP Support:
  
  If the issue persists, consider reaching out to SAP Support for assistance. They can provide guidance based on your specific configuration and usage of the system.
  
  
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting and the different methods available for testing hedge effectiveness is crucial. Familiarize yourself with the International Financial Reporting Standards (IFRS) or Generally Accepted Accounting Principles (GAAP) as they relate to hedge accounting.
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to Treasury and Risk Management, such as transaction codes for managing hedging relationships and performing effectiveness tests.
  Training and Resources: Consider training sessions or resources on SAP Treasury and Risk Management to better understand the functionalities and limitations of the system.
  
  By following these steps, you should be able to address the TPM_THX1293 error and ensure that your hedge effectiveness testing is conducted appropriately.