How To Fix TPM_THXE1013 - Hedging rel. &1/&2: Prospective test on &3 is not effective

TPM_THXE1013 - Overview

• Message type: E = Error

• Message class: TPM_THXE1 - message class for effectiveness test

• Message number: 013

• Message text: Hedging rel. &1/&2: Prospective test on &3 is not effective

What causes this issue?

You want to calculate a prospective effectiveness test for a given test
date. This step in Hedge Accounting is only allowed if the hedging
relationship was always tested as effective in the history before the
test date in both test types, prospective and retrospective
effectiveness test.

System Response

How to fix this error?

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

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_THXE1013 - Hedging rel. &1/&2: Prospective test on &3 is not effective ?

  The SAP error message TPM_THXE1013 indicates that a prospective test for a hedging relationship is not effective. This error typically arises in the context of hedge accounting within SAP Treasury and Risk Management (TRM) when the system evaluates the effectiveness of a hedging relationship.
  
  Cause:
  The error message can be triggered by several factors, including:
  
  
  Ineffective Hedging Relationship: The hedging relationship may not meet the effectiveness criteria as defined by accounting standards (e.g., IFRS 9 or ASC 815). This could be due to a mismatch in the hedged item and the hedging instrument.
  
  
  Data Issues: There may be missing or incorrect data in the hedging relationship setup, such as incorrect valuation parameters, missing cash flow data, or incorrect hedge designation.
  
  
  Market Conditions: Changes in market conditions can lead to a situation where the hedging instrument no longer effectively offsets the risk associated with the hedged item.
  
  
  
  Configuration Issues: Incorrect configuration in the SAP system related to