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

TPM_THX1386 - Overview

• 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