How To Fix TPM_THX1386 - End date of hedged item (&1) is less than that of hedging instrument (&2)

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 386

• Message text: End date of hedged item (&1) is less than that of hedging instrument (&2)

What causes this issue?

The end date of the hedged items must always be later than or equal to
the end date of the hedging instrument.
If a hedging profile with rollover is supported, the end date of the
hedged item must be later than or equal to the end date of the rollover
instrument.

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_THX1386 - End date of hedged item (&1) is less than that of hedging instrument (&2) ?

  The SAP error message TPM_THX1386 indicates that there is a mismatch in the end dates between a hedged item and its corresponding hedging instrument in the Treasury and Risk Management (TRM) module. Specifically, the end date of the hedged item is earlier than the end date of the hedging instrument, which is not allowed as it violates the hedging relationship.
  Cause:
  
  End Date Mismatch: The primary cause of this error is that the hedged item (e.g., a forecasted cash flow or a financial transaction) has an end date that is earlier than the end date of the hedging instrument (e.g., a derivative or other financial instrument used for hedging).
  Incorrect Data Entry: This can occur due to incorrect data entry when setting up the hedged item or the hedging instrument.
  Changes in Business Requirements: Changes in business requirements or cash flow forecasts may lead to adjustments in the hedged item that were not reflected in the hedging instrument.
  
  Solution:
  
  Review End Dates: Check the end dates of both the hedged item and the hedging instrument. Ensure that the end date of the hedged item is equal to or later than the end date of the hedging instrument.
  Adjust Dates: If the hedged item’s end date is indeed earlier, you will need to adjust it to match or extend beyond the end date of the hedging instrument.
  Re-evaluate Hedging Strategy: If the hedged item’s end date cannot be changed due to business reasons, you may need to re-evaluate the hedging strategy and possibly adjust or create a new hedging instrument that aligns with the hedged item.
  Consult Documentation: Refer to SAP documentation or your organization's internal guidelines for managing hedging relationships to ensure compliance with accounting standards and internal policies.
  
  Related Information:
  
  Hedging Relationships: Understanding the relationship between hedged items and hedging instruments is crucial for effective risk management.
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedging instruments and hedged items, such as TPM1 (Create Hedging Relationship) and TPM2 (Change Hedging Relationship).
  SAP Notes: Check for any SAP Notes related to this error message for additional guidance or patches that may address specific issues.
  Training and Support: If you are unsure about how to resolve the issue, consider reaching out to your SAP support team or attending training sessions on Treasury and Risk Management.
  
  By following these steps, you should be able to resolve the TPM_THX1386 error and ensure that your hedging relationships are correctly configured in SAP.