How To Fix TPM_THX1475 - Option exercise not possible. H.Rel. &1 in CoCd &2 already dedesignated

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 475

• Message text: Option exercise not possible. H.Rel. &1 in CoCd &2 already dedesignated

What causes this issue?

You are trying to exercise an option or to settle an exercise option.
The option is in a hedging relationship and the resulting forward
transaction should be added to the existing hedging relationship. The
dedesignation business transaction of this hedging relationship has
already been released with transaction <AB>TPM120.</>

System Response

The system doesn't allow you to exercise an option or to settle an
exercise option.

How to fix this error?

Use transaction <AB>TPM121</> first to reverse the release of the
corresponding dedesignation business transaction.

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_THX1475 - Option exercise not possible. H.Rel. &1 in CoCd &2 already dedesignated ?

  The SAP error message TPM_THX1475 indicates that an option exercise is not possible because the related hedge relationship (H.Rel.) has already been dedesignated in the specified company code (CoCd). This typically occurs in the context of Treasury and Risk Management (TRM) when dealing with financial instruments and hedging relationships.
  Cause:
  
  Dedesignation of Hedge Relationship: The hedge relationship associated with the option has been dedesignated, meaning it is no longer active. This could happen due to various reasons, such as the expiration of the hedge, manual dedesignation, or changes in the underlying asset or liability.
  Incorrect Status: The option may be in a status that does not allow for exercise, often due to the dedesignation of the hedge relationship.
  Data Entry Errors: There may be errors in the data entry or configuration that led to the hedge relationship being marked as dedesignated.
  
  Solution:
  
  Check Hedge Relationship Status: Verify the status of the hedge relationship in the system. If it has been dedesignated, you will need to assess whether it can be reactivated or if a new hedge relationship needs to be created.
  Review Transaction Data: Look into the transaction data for the option and ensure that all related entries are correct and that the hedge relationship is still valid.
  Recreate Hedge Relationship: If necessary, create a new hedge relationship that corresponds to the option you are trying to exercise.
  Consult Documentation: Refer to SAP documentation or your organization's internal guidelines for managing hedge relationships and options to ensure compliance with procedures.
  Contact Support: If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert who specializes in Treasury and Risk Management.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that might address this specific error or provide additional troubleshooting steps.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedge relationships and options, such as:
  
  TPM1: Create Hedge Relationship
  TPM2: Change Hedge Relationship
  TPM3: Display Hedge Relationship
  
  
  Training and Documentation: Ensure that users involved in managing options and hedge 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 take appropriate action to resolve it.