How To Fix TPM_TRIL1118 - Posted hedge accounting flows for hedged item &4 exist after key date

SAP Error Message - Details

• Message type: E = Error

• Message class: TPM_TRIL1 - Messages from the Income Ledger

• Message number: 118

• Message text: Posted hedge accounting flows for hedged item &4 exist after key date

What causes this issue?

You want to carry out an activity on &V1&. This requires that no there
are no posted hedge accounting flows between hedge item &V4& and hedging
instrument &V3& on or after the key date. However, this is not the case
here. The latest reclassification flow exists on &V2&.

System Response

The activity is terminated.

How to fix this error?

First reverse the hedge accounting flows on &V2& or perform the activity
on a later key date.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message TPM_TRIL1118 - Posted hedge accounting flows for hedged item &4 exist after key date ?

  The SAP error message TPM_TRIL1118 indicates that there are posted hedge accounting flows for a hedged item that exist after a specified key date. This error typically arises in the context of Treasury and Risk Management (TRM) when dealing with hedge accounting in SAP.
  Cause:
  The error occurs when you attempt to perform an action (such as closing a hedge relationship or executing a transaction) that requires all hedge accounting flows to be settled or cleared up to a certain key date. If there are any posted flows (transactions) related to the hedged item that occur after this key date, the system will prevent the action from being completed to ensure data integrity and compliance with accounting standards.
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Identify Posted Flows: Check the posted hedge accounting flows for the hedged item in question. You can do this by navigating to the relevant transaction in SAP (e.g., using transaction codes like TPM1, TPM2, or TPM3) to view the details of the hedge accounting.
  
  
  Review Key Date: Understand the key date that is causing the issue. This date is typically set during the hedge accounting process and may need to be adjusted based on your business requirements.
  
  
  Adjust or Settle Flows: If there are flows that need to be settled or adjusted, you may need to:
  
  Reverse or adjust the transactions that are causing the issue.
  Settle the hedge accounting flows that are posted after the key date.
  
  
  
  Change Key Date: If appropriate, you may consider changing the key date to a later date that encompasses the posted flows. However, this should be done with caution and in accordance with your organization's accounting policies.
  
  
  Consult Documentation: Refer to SAP documentation or your organization's internal guidelines for hedge accounting to ensure compliance with accounting standards.
  
  
  Seek Help from SAP Support: If you are unable to resolve the issue, consider reaching out to SAP support or your internal SAP team for further assistance.
  
  
  Related Information:
  
  Hedge Accounting: This is a method used to manage financial risk by offsetting potential losses in one asset with gains in another. It is crucial for companies that deal with foreign exchange, interest rates, or commodity prices.
  SAP Transaction Codes: Familiarize yourself with relevant transaction codes in SAP for managing hedge accounting, such as TPM1 (Hedge Management), TPM2 (Hedge Accounting), and TPM3 (Hedge Accounting Analysis).
  Regulatory Compliance: Ensure that your hedge accounting practices comply with relevant accounting standards (e.g., IFRS 9, ASC 815) to avoid issues in financial reporting.
  
  By following these steps, you should be able to address the TPM_TRIL1118 error and proceed with your hedge accounting activities in SAP.