How To Fix TPM_THX1501 - &1 is part of a hedging relationship

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 501

• Message text: &1 is part of a hedging relationship

What causes this issue?

You are trying to reverse a financial transaction that is part of a
hedging relationship.
If the financial transaction is part of an E-HA hedging relationship,
you can see this in the separate tab page for Hedge Accounting.
Otherwise, you can use the function <LS>Manage Hedging Relationships</>
to search for any hedging relationship that contains this financial
transaction.

System Response

The system resolves the hedging relationship.

How to fix this error?

You cannot reverse the financial transaction completely if it is part of
a hedging relationship.
You can delete the hedging relationship containing the financial
transaction and then try to reverse the 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.

INCLUDE 'CUSTOMIZED_MESSAGE_INFO' OBJECT DOKU ID TX

What causes this issue?

You are trying to reverse a financial transaction that is part of a
hedging relationship.
If the financial transaction is part of an E-HA hedging relationship,
you can see this in the separate tab page for Hedge Accounting.
Otherwise, you can use the function <LS>Manage Hedging Relationships
</>(transaction <AB>TPM100)</> to search for any hedging relationship
that contains this financial transaction.

System Response

The system resolves the hedging relationship.

How to fix this error?

You cannot reverse the financial transaction completely if it is part of
a hedging relationship.
You can delete the hedging relationship containing the financial
transaction and then try to reverse the transaction.

Procedure for System Administrators

INCLUDE 'CUSTOMIZED_MESSAGE_INFO' OBJECT DOKU ID TX

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_THX1501 - &1 is part of a hedging relationship ?

  The SAP error message TPM_THX1501 indicates that a specific financial instrument (such as a derivative or a hedging instrument) is part of a hedging relationship, and therefore, certain actions cannot be performed on it. This error typically arises in the context of Treasury and Risk Management (TRM) within SAP, particularly when dealing with hedge accounting.
  Cause:
  The error occurs when you attempt to perform an action (like deletion, modification, or certain types of postings) on a financial instrument that is currently linked to a hedging relationship. SAP enforces this restriction to ensure the integrity of hedge accounting, as changes to hedging instruments can affect the effectiveness of the hedge and the associated financial reporting.
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Hedging Relationships: Verify the hedging relationship associated with the financial instrument. You can do this by navigating to the relevant transaction in SAP (e.g., using transaction code TPM1 for hedging relationships).
  
  
  Review the Status: Ensure that the hedging relationship is in a status that allows for the action you are trying to perform. If the hedging relationship is active, you may need to deactivate it before making changes to the underlying instrument.
  
  
  Deactivate the Hedging Relationship: If you need to modify or delete the financial instrument, you may need to deactivate the hedging relationship first. This can typically be done in the hedging relationship management area of SAP.
  
  
  Consult Documentation: Refer to SAP documentation or help files for specific instructions on managing hedging relationships and the implications of deactivating them.
  
  
  Seek Assistance: If you are unsure about the implications of deactivating a hedging relationship or if you need to maintain compliance with accounting standards, consult with your finance or treasury department, or reach out to SAP support for guidance.
  
  
  Related Information:
  
  Hedge Accounting: Understand the principles of hedge accounting, including the types of hedges (fair value hedges, cash flow hedges, etc.) and the requirements for documenting and maintaining hedging relationships.
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedging relationships (e.g., TPM1, TPM2, TPM3).
  Regulatory Compliance: Be aware of the accounting standards (such as IFRS 9 or ASC 815) that govern hedge accounting, as these may impact how you manage hedging relationships in SAP.
  
  By following these steps and understanding the context of the error, you should be able to address the TPM_THX1501 error effectively.