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

SAP Error Message - Details

• 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  Hedged Item Status: The hedged item may have been closed or is no longer valid on the specified date.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 of the hedged item and the hedging relationship. Ensure that the hedged item is valid and effective on the specified date.
  Review Hedging Relationship: Examine the configuration of the hedging relationship to ensure it is set up correctly. This includes checking the parameters and settings related to the hedged item and the hedging instrument.
  Analyze Market Conditions: Assess the market conditions that may have affected the effectiveness of the hedged item. If the hedged item is no longer effective, you may need to adjust your hedging strategy.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on the error message and related transactions.
  Transaction Codes: Use relevant transaction codes (e.g., TPM1, TPM2, TPM3) to analyze and adjust the hedging relationships and hedged items.
  Engage with SAP Support: If the issue persists, consider reaching out to SAP support for further assistance, especially if it involves complex configurations or system issues.
  
  Related Information:
  
  Hedge Accounting: Understanding the principles of hedge accounting and how it applies to your financial instruments can help in troubleshooting.
  SAP Notes: Check for any SAP Notes related to this error message, as they may provide specific fixes or updates.
  Training and Documentation: Ensure that users involved in managing hedging relationships are adequately trained and have access to the necessary documentation.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.