How To Fix TPM_THXE1020 - Hedging rel. &1/&2: Retrospective test for bus. trans. &3 has errors

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_THXE1 - message class for effectiveness test

• Message number: 020

• Message text: Hedging rel. &1/&2: Retrospective test for bus. trans. &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 business transaction &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_THXE1020 - Hedging rel. &1/&2: Retrospective test for bus. trans. &3 has errors ?

  The SAP error message TPM_THXE1020 typically relates to issues encountered during the retrospective test of a hedging relationship in the context of Treasury and Risk Management (TRM) within SAP. This error indicates that there are errors in the retrospective effectiveness test for a specific business transaction.
  Cause:
  The error can arise due to several reasons, including:
  
  
  Data Inconsistencies: There may be inconsistencies in the data related to the hedging relationship or the underlying transaction. This could include incorrect or missing data in the hedging instruments or the hedged items.
  
  
  Hedging Relationship Setup: The hedging relationship may not be set up correctly. This includes issues with the designation of the hedging instrument, the hedged item, or the effectiveness criteria.
  
  
  Market Data Issues: The market data used for the effectiveness test may be missing or incorrect. This could involve interest rates, foreign exchange rates, or other relevant market data.
  
  
  Calculation Errors: There may be errors in the calculations performed during the effectiveness test, possibly due to incorrect parameters or settings in the system.
  
  
  Regulatory Compliance: The hedging relationship may not comply with the relevant accounting standards (e.g., IFRS 9 or ASC 815), leading to errors in the effectiveness assessment.
  
  
  Solution:
  To resolve the TPM_THXE1020 error, you can follow these steps:
  
  
  Check Data Consistency: Review the data for the hedging relationship and the underlying transactions. Ensure that all necessary data is complete and accurate.
  
  
  Review Hedging Relationship Setup: Verify that the hedging relationship is correctly configured. Check the settings for the hedging instrument and the hedged item, including the effectiveness criteria.
  
  
  Validate Market Data: Ensure that the market data used for the effectiveness test is available and accurate. You may need to update or correct the market data in the system.
  
  
  Run the Effectiveness Test Again: After making the necessary corrections, re-run the retrospective effectiveness test to see if the errors persist.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on the effectiveness testing process and any relevant configuration settings.
  
  
  Seek Expert Assistance: If the issue persists, consider consulting with an SAP expert or your organization's SAP support team for further analysis and troubleshooting.
  
  
  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 for managing hedging relationships, such as TPM1 (Hedging Relationship) and TPM2 (Hedging Relationship: Display).
  Training and Documentation: Consider training resources or documentation on Treasury and Risk Management in SAP to better understand the configuration and management of hedging relationships.
  
  By following these steps, you should be able to identify and resolve the issues causing the TPM_THXE1020 error in your SAP system.