How To Fix TPM_THXE1112 - Hedging rel. &1/&2: Fixed leg NPV is only supported for IR swaps

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_THXE1 - message class for effectiveness test

• Message number: 112

• Message text: Hedging rel. &1/&2: Fixed leg NPV is only supported for IR swaps

What causes this issue?

The derivative instrument is not an interest rate swap.

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

System Response

Fixed leg NPV is supported for interest rate swaps only.

How to fix this error?

Assign an interest rate swap to the hedge relationship.

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_THXE1112 - Hedging rel. &1/&2: Fixed leg NPV is only supported for IR swaps ?

  The SAP error message TPM_THXE1112 indicates that there is an issue related to the Net Present Value (NPV) calculation for a hedging relationship in the context of interest rate (IR) swaps. Specifically, the error states that the fixed leg NPV is only supported for interest rate swaps, which means that the system is trying to perform an operation that is not applicable to the type of financial instrument being processed.
  Cause:
  
  
  Incorrect Instrument Type: The error typically arises when the system is attempting to calculate the NPV for a fixed leg of a financial instrument that is not an interest rate swap. This could happen if the instrument is a commodity swap, foreign exchange swap, or another type of derivative that does not support fixed leg NPV calculations.
  
  
  Configuration Issues: There may be configuration settings in the SAP system that are not correctly set up for the specific financial instruments being used.
  
  
  Data Entry Errors: Incorrect data entry or missing information in the hedging relationship setup can also lead to this error.
  
  
  Solution:
  
  
  Verify Instrument Type: Check the type of financial instrument you are working with. Ensure that it is indeed an interest rate swap if you are trying to calculate the fixed leg NPV. If it is not, you may need to adjust your approach or use a different calculation method.
  
  
  Review Configuration: Ensure that the configuration settings in the SAP system are appropriate for the financial instruments you are using. This may involve checking the settings in the Treasury and Risk Management (TRM) module.
  
  
  Check Data Entry: Review the data entered for the hedging relationship. Ensure that all required fields are filled out correctly and that the data is consistent with the type of instrument being used.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on the types of instruments supported and the calculations that can be performed.
  
  
  Seek Support: If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert who can provide more tailored assistance based on your specific configuration and usage.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional context on how to resolve it.
  SAP Community: Engage with the SAP Community forums where other users may have encountered similar issues and can share their solutions.
  Training and Documentation: Ensure that users involved in the setup and management of hedging relationships are adequately trained on the functionalities and limitations of the SAP TRM module.
  
  By following these steps, you should be able to identify the root cause of the error and implement a suitable solution.