How To Fix TPM_THXE1017 - Hedging rel. &1/&2: Prospective test on &3 has errors

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_THXE1 - message class for effectiveness test

• Message number: 017

• Message text: Hedging rel. &1/&2: Prospective test on &3 has errors

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.
For hedging relationship &V1&/&V2& for test date &V3&, the test finished
with errors. Consequently,
the precondition of a complete effective history is not fulfilled.

System Response

The effectiveness test is canceled.

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_THXE1017 - Hedging rel. &1/&2: Prospective test on &3 has errors ?

  The SAP error message TPM_THXE1017 is related to the Treasury and Risk Management module, specifically in the context of hedging transactions. This error indicates that there are issues with the prospective test for a hedging relationship, which is a critical part of ensuring that the hedging strategy is effective and compliant with accounting standards.
  Cause:
  The error message typically arises due to one or more of the following reasons:
  
  
  Data Inconsistencies: There may be inconsistencies or missing data in the hedging relationship or the underlying transaction. This could include incorrect or incomplete configuration of the hedging relationship.
  
  
  Ineffective Hedging: The prospective test evaluates whether the hedging relationship is expected to be highly effective in offsetting changes in fair value or cash flows. If the test fails, it indicates that the hedging relationship may not be effective.
  
  
  Incorrect Parameters: The parameters used for the prospective test may be incorrectly set, leading to errors in the evaluation.
  
  
  Market Data Issues: The market data used for the test may be outdated or incorrect, affecting the results of the prospective test.
  
  
  Configuration Issues: There may be issues with the configuration of the hedging relationship in the system, such as incorrect settings for the hedged item or hedging instrument.
  
  
  Solution:
  To resolve the TPM_THXE1017 error, you can take the following steps:
  
  
  Review the Hedging Relationship: Check the configuration of the hedging relationship for any inconsistencies or missing data. Ensure that all required fields are filled out correctly.
  
  
  Run the Prospective Test Again: After making any necessary corrections, run the prospective test again to see if the errors persist.
  
  
  Check Market Data: Ensure that the market data used for the prospective test is up to date and accurate. If necessary, refresh the market data.
  
  
  Analyze Effectiveness: Review the effectiveness of the hedging relationship. If the relationship is not expected to be effective, consider adjusting the hedging strategy or the instruments used.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on the prospective test and hedging relationships.
  
  
  Seek Expert Help: If the issue persists, consider consulting with an SAP expert or your organization's SAP support team for further assistance.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP Treasury and Risk Management, such as TPM1 for creating hedging relationships and TPM2 for managing them.
  Training and Documentation: Consider training resources or documentation on SAP Treasury and Risk Management to better understand hedging relationships and their management.
  
  By following these steps, you should be able to identify and resolve the issues causing the TPM_THXE1017 error in your SAP system.