How To Fix TPM_THXE1024 - Eff. test is used in Hedge Accounting; No recalculation permitted

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_THXE1 - message class for effectiveness test

• Message number: 024

• Message text: Eff. test is used in Hedge Accounting; No recalculation permitted

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_THXE1024 - Eff. test is used in Hedge Accounting; No recalculation permitted ?

  The SAP error message TPM_THXE1024 indicates that an effective test is being used in hedge accounting, and as a result, no recalculation is permitted. This error typically arises in the context of Treasury and Risk Management (TRM) within SAP, particularly when dealing with hedge accounting for financial instruments.
  Cause:
  
  Effective Test in Hedge Accounting: The effective test is a requirement in hedge accounting to assess whether the hedging relationship is effective. If the effective test has been performed and the hedge is deemed effective, SAP restricts any recalculation of the hedge to maintain the integrity of the accounting treatment.
  Recalculation Attempt: The error occurs when there is an attempt to recalculate the hedge accounting entries or the effective test after it has already been executed and confirmed.
  
  Solution:
  
  Review Hedge Accounting Entries: Check the hedge accounting entries to ensure that they are correctly set up and that the effective test has been performed as intended.
  Avoid Recalculation: If the effective test has already been executed, avoid attempting to recalculate the hedge. Instead, focus on any necessary adjustments or corrections that can be made without recalculating the effective test.
  Consult Documentation: Refer to SAP documentation or help resources related to hedge accounting and effective tests to understand the implications of the error and the correct procedures to follow.
  System Configuration: Ensure that the system configuration for hedge accounting is set up correctly. This may involve checking the settings for the hedge relationships and the parameters for effective testing.
  Seek Support: If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert who specializes in Treasury and Risk Management for further assistance.
  
  Related Information:
  
  Hedge Accounting: This is an accounting method that aims to reduce the volatility in earnings caused by fluctuations in the value of financial instruments. It involves designating certain financial instruments as hedges against specific risks.
  Effective Test: This is a test performed to assess the effectiveness of a hedging relationship. It typically involves comparing the changes in the value of the hedged item and the hedging instrument.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on handling hedge accounting in SAP.
  
  By following these steps, you should be able to address the TPM_THXE1024 error effectively.