How To Fix FC042 - Valuation of 2nd and 3rd local currencies must be different

SAP Error Message - Details

• Message type: E = Error

• Message class: FC - FI configuration error messages

• Message number: 042

• Message text: Valuation of 2nd and 3rd local currencies must be different

What causes this issue?

The valuations for the second and third local currency must be
different if the currency type is the same.

System Response

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

How to fix this error?

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 FC042 - Valuation of 2nd and 3rd local currencies must be different ?

  The SAP error message FC042, which states "Valuation of 2nd and 3rd local currencies must be different," typically occurs during the valuation process in the Financial Accounting (FI) module when there is an attempt to perform currency valuation for a company code that has multiple local currencies defined.
  Cause:
  This error arises when the system detects that the second and third local currencies (usually defined in the company code settings) have the same currency code or valuation method. In SAP, each local currency should have a unique valuation to ensure accurate financial reporting and compliance with accounting standards.
  Solution:
  To resolve this error, you can follow these steps:
  
  
  Check Company Code Settings:
  
  Go to the transaction code OBY6 (or navigate through the menu: Financial Accounting > General Ledger > Master Data > Company Code > Edit, Copy, Delete, Check Company Code).
  Select the relevant company code and check the settings for local currencies.
  
  
  
  Verify Currency Configuration:
  
  Ensure that the second and third local currencies are set to different currency codes. For example, if the local currency is USD, the second local currency could be EUR, and the third could be GBP.
  If they are the same, you will need to change one of them to a different currency.
  
  
  
  Adjust Valuation Methods:
  
  Check the valuation methods assigned to the second and third local currencies. They should be different to avoid conflicts during the valuation process.
  
  
  
  Re-run Valuation:
  
  After making the necessary changes, re-run the currency valuation process using transaction code F.05 (or the appropriate transaction for currency valuation).
  
  
  
  Consult Documentation:
  
  If you are unsure about the correct settings, refer to SAP documentation or consult with your SAP FI consultant for guidance on proper currency configuration.
  
  
  
  Related Information:
  
  Transaction Codes:
  
  OBY6: Company Code Configuration
  F.05: Currency Valuation
  
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates related to this error.
  Testing: After making changes, it is advisable to test the valuation process in a development or test environment before applying changes in production.
  
  By ensuring that the second and third local currencies are distinct and properly configured, you should be able to resolve the FC042 error and proceed with your currency valuation tasks.