How To Fix TPM_TLV1065 - Effectiveness test is not possible for freestanding subposition

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_TLV1 - Treasury: Messages TRL Valuation

• Message number: 065

• Message text: Effectiveness test is not possible for freestanding subposition

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_TLV1065 - Effectiveness test is not possible for freestanding subposition ?

  The SAP error message TPM_TLV1065, which states "Effectiveness test is not possible for freestanding subposition," typically occurs in the context of Treasury and Risk Management, particularly when dealing with financial instruments and their effectiveness testing.
  Cause:
  This error usually arises when you are trying to perform an effectiveness test on a freestanding subposition (a position that is not linked to a hedging relationship). Effectiveness tests are generally applicable to hedging relationships where the underlying and hedging instruments are linked. If you attempt to run an effectiveness test on a position that is not part of a hedging relationship, SAP will throw this error.
  Solution:
  To resolve this error, consider the following steps:
  
  
  Check Position Type: Ensure that the position you are trying to test is part of a hedging relationship. If it is a freestanding subposition, you will need to link it to a hedging relationship to perform the effectiveness test.
  
  
  Link to Hedging Relationship: If applicable, create or modify a hedging relationship that includes the subposition. This can typically be done in the SAP Treasury module where you manage hedging relationships.
  
  
  Review Configuration: Ensure that your system configuration allows for the effectiveness testing of the specific types of positions you are working with. This may involve checking settings in the Treasury and Risk Management module.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on how to manage hedging relationships and effectiveness 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.
  
  
  Related Information:
  
  Effectiveness Testing: This is a process used to assess whether a hedging relationship is effective in offsetting the risk of changes in the fair value or cash flows of the hedged item.
  Hedging Relationships: These are established to manage financial risks by linking a hedging instrument (like a derivative) to an underlying exposure (like a forecasted transaction).
  SAP Modules: This error is relevant to the SAP Treasury and Risk Management (TRM) module, which deals with financial instruments, risk management, and hedging activities.
  
  By following these steps, you should be able to address the TPM_TLV1065 error and successfully perform effectiveness testing on the appropriate positions.