How To Fix TPM_THXE1010 - Hedging relationship &1/&2 is revoked: No effectiveness test is possible

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_THXE1 - message class for effectiveness test

• Message number: 010

• Message text: Hedging relationship &1/&2 is revoked: No effectiveness test is possible

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_THXE1010 - Hedging relationship &1/&2 is revoked: No effectiveness test is possible ?

  The SAP error message TPM_THXE1010 indicates that a hedging relationship has been revoked, and as a result, an effectiveness test cannot be performed. This error typically arises in the context of hedge accounting within SAP Treasury and Risk Management (TRM) when the system detects that the hedging relationship is no longer valid.
  Cause:
  
  
  Revocation of Hedging Relationship: The hedging relationship may have been revoked due to various reasons, such as:
  
  The underlying transaction or hedging instrument has been settled or terminated.
  The hedging relationship does not meet the effectiveness criteria as defined in accounting standards (e.g., IFRS or GAAP).
  Changes in the terms of the hedging instrument or the underlying exposure that affect the relationship's validity.
  
  
  
  Missing Data: Required data for performing the effectiveness test may be missing or incomplete.
  
  
  Configuration Issues: There may be issues with the configuration of the hedge accounting settings in SAP.
  
  
  Solution:
  
  
  Review the Hedging Relationship: Check the details of the hedging relationship (e.g., the underlying transaction and the hedging instrument) to understand why it was revoked. You can do this by navigating to the relevant transaction in SAP.
  
  
  Re-establish the Hedging Relationship: If the hedging relationship is still valid and should be active, you may need to re-establish it. This could involve creating a new hedging relationship or modifying the existing one.
  
  
  Check Effectiveness Criteria: Ensure that the hedging relationship meets the effectiveness criteria as per the applicable accounting standards. If it does not, you may need to adjust the hedging strategy or instruments used.
  
  
  Data Completeness: Ensure that all necessary data for the effectiveness test is complete and accurate. This includes checking the valuation of the hedging instrument and the underlying exposure.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on hedge accounting and effectiveness testing.
  
  
  Contact Support: If the issue persists, consider reaching out to SAP support or your internal SAP team for further assistance.
  
  
  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 effectiveness testing.
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedging relationships, such as:
  
  TPM1: Create Hedging Relationship
  TPM2: Change Hedging Relationship
  TPM3: Display Hedging Relationship
  
  
  Regulatory Standards: Be aware of the accounting standards that govern hedge accounting, such as IFRS 9 or ASC 815, which outline the requirements for hedge effectiveness.
  
  By following these steps and understanding the context of the error, you should be able to address the TPM_THXE1010 error effectively.