How To Fix TPM_THX1358 - Hedged item &1 is not effective on &2 in hedging relationship &3

TPM_THX1358 - Overview

• Message type: E = Error

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

• Message number: 358

• Message text: Hedged item &1 is not effective on &2 in hedging relationship &3

What causes this issue?

The Hedged Item is not effective within the Hedging Relationship for the
specified keydate.

System Response

The process ignores prospectively or retrospectively not effective
Hedged Items for valuation.

How to fix this error?

The Hedged Item must be made prospectively and retrospectively effective
within the Hedging Relationship for the keydate before re-executing this
process. This could be done in the following ways.
- The effectiveness test results though valid may not be current and
hence execute the effectiveness test for a more recent date which is as
close as possible to the key date on which the valuation is to be
executed.
- Dedesignate the Hedged Item within the Hedging Relationship and try
designating it again with a more appropriate Hedging Instrument so as to
achieve the specified effectivity.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_THX1358 - Hedged item &1 is not effective on &2 in hedging relationship &3 ?

  The SAP error message TPM_THX1358 indicates that a hedged item is not effective on a specific date in the context of a hedging relationship. This error typically arises in the context of Treasury and Risk Management (TRM) within SAP, particularly when dealing with hedge accounting.
  
  Cause:
  The error can occur due to several reasons:
  
  Ineffective Hedging Relationship: The hedged item may not be effective on the specified date due to changes in market conditions or the underlying asset's value.
  Incorrect Configuration: The hedging relationship may not be properly configured, leading to mismatches between the hedged item and the hedging instrument.
  Date Mismatch: The date specified in the error message may not align with the effective dates of the hedged item or the hedging relationship.
  Hedged Item Status: The hedged item may have been closed or is no longer valid on the specified date.
  
  
  Solution:
  To resolve the error, consider the following steps:
  
  Check Effective Dates: Verify the effective dates