How To Fix TPM_THXE1018 - Hedging rel. &1/&2: Retrospective test on &3 has errors

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_THXE1 - message class for effectiveness test

• Message number: 018

• Message text: Hedging rel. &1/&2: Retrospective 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
terminated with errors. Consequently,
the precondition of a complete effective history is not met.

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_THXE1018 - Hedging rel. &1/&2: Retrospective test on &3 has errors ?

  The SAP error message TPM_THXE1018 typically relates to issues encountered during the retrospective test of a hedging relationship in the context of hedge accounting within the SAP Treasury and Risk Management (TRM) module. This error indicates that there are errors in the retrospective effectiveness test for a specific hedging relationship.
  Cause:
  The error can arise due to several reasons, including but not limited to:
  
  
  Data Inconsistencies: There may be inconsistencies in the data used for the effectiveness test, such as incorrect or missing market values, cash flows, or hedge parameters.
  
  
  Hedging Relationship Setup: The hedging relationship may not be set up correctly, including the designation of the hedged item and the hedging instrument.
  
  
  Calculation Issues: There may be issues with the calculations performed during the effectiveness test, such as incorrect formulas or parameters.
  
  
  Time Frame Issues: The time frame for the retrospective test may not align with the data available or the hedging relationship's duration.
  
  
  Configuration Issues: There may be configuration issues in the system settings related to hedge accounting.
  
  
  Solution:
  To resolve the TPM_THXE1018 error, you can follow these steps:
  
  
  Check Data Integrity: Review the data for the hedging relationship in question. Ensure that all necessary data points (market values, cash flows, etc.) are correctly entered and up to date.
  
  
  Review Hedging Relationship Setup: Verify that the hedging relationship is correctly defined. Check the hedged item and hedging instrument settings to ensure they are properly linked.
  
  
  Run Effectiveness Test Again: After making any necessary corrections, re-run the retrospective effectiveness test to see if the error persists.
  
  
  Analyze Error Logs: Check the detailed error logs or messages provided by SAP for more specific information about what went wrong during the test. This can provide insights into the exact nature of the errors.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for guidance on the specific parameters and settings required for successful effectiveness testing.
  
  
  Seek Expert Help: If the issue persists, consider consulting with an SAP expert or your internal SAP support team for further assistance.
  
  
  Related Information:
  
  
  Hedge Accounting: Understanding the principles of hedge accounting and the requirements for effectiveness testing is crucial. Familiarize yourself with the relevant accounting standards (e.g., IFRS 9 or ASC 815) that govern hedge accounting.
  
  
  SAP Notes: Check for any relevant SAP Notes that may address known issues or provide patches related to the TPM_THXE1018 error.
  
  
  Training and Resources: Consider training sessions or resources on SAP Treasury and Risk Management to better understand the functionalities and troubleshooting techniques.
  
  
  By following these steps and understanding the underlying causes, you should be able to address the TPM_THXE1018 error effectively.