How To Fix FC344 - An additional local currency without data conversion can create problems

FC344 - Overview

• Message type: E = Error

• Message class: FC - FI configuration error messages

• Message number: 344

• Message text: An additional local currency without data conversion can create problems

What causes this issue?

An additional local currency in company code &V1& can lead to problems
during clearing in rare cases, (such as with cash discount and
backdated tax calculation), if documents have already been posted. To
avoid these problems, it is necessary to convert the open item data.
Contact SAP for this.
The introduction of an additional local currency can also lead to
problems in other applications. If so, refer to the appropriate
application documentation regarding parallel currencies.

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?

Error message extract from SAP system. Copyright SAP SE.

FC344 - Details

• The SAP error message FC344, which states "An additional local currency without data conversion can create problems," typically arises in the context of financial accounting and currency settings within the SAP system. This error indicates that there is an issue with the configuration of additional local currencies in the system, particularly when there is no data conversion defined for these currencies.
  
  Cause:
  
  
  Configuration Issues: The error often occurs when an additional local currency is defined in the system, but there is no corresponding data conversion setup. This can lead to inconsistencies in financial reporting and data integrity.
  Missing Conversion Rates: If the system is set to use an additional local currency but lacks the necessary conversion rates or settings to convert between the company code currency and the additional local currency, it can trigger this error.
  Inconsistent Currency Settings: If the currency settings in the company code or controlling area are not aligned with