How To Fix GC126 - Settings for currency translation are incorrect

SAP Error Message - Details

• Message type: E = Error

• Message class: GC - Error Messages for Consolidation/Extended General Ledger

• Message number: 126

• Message text: Settings for currency translation are incorrect

What causes this issue?

Domestic <DS:GLOS.company>companies</> cannot be managed in
<DS:GLOS.group_currency>group currency</>.
When data entry or a <DS:GLOS.standardizing_entry>standardizing
entry</> is made for a domestic company, the values are posted in both
local and group currency, so that a currency translation is not
required.

System Response

Error message.

How to fix this error?

The flag "Entry in RC" must not be set for a domestic company.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message GC126 - Settings for currency translation are incorrect ?

  The SAP error message GC126, which states "Settings for currency translation are incorrect," typically arises during the execution of currency translation processes in SAP, particularly in the context of Financial Accounting (FI) or Controlling (CO) modules. This error indicates that there is a misconfiguration in the settings related to currency translation.
  Causes of Error GC126
  
  
  Incorrect Configuration of Currency Translation: The settings for currency translation in the system may not be properly configured. This includes the translation methods, exchange rates, or the currency types being used.
  
  
  Missing or Incorrect Exchange Rates: The exchange rates required for the currency translation may be missing or incorrectly defined in the system.
  
  
  Inconsistent Currency Settings: There may be inconsistencies in the currency settings between different modules or within the same module.
  
  
  Incorrectly Defined Translation Types: The translation types used for currency conversion may not be set up correctly in the system.
  
  
  Missing Master Data: Required master data for the currencies involved may be missing or incomplete.
  
  
  Solutions to Error GC126
  
  
  Check Currency Translation Settings:
  
  Navigate to the configuration settings for currency translation in SAP (usually found in the SPRO transaction under Financial Accounting or Controlling).
  Ensure that the translation methods and types are correctly defined.
  
  
  
  Verify Exchange Rates:
  
  Go to the transaction for maintaining exchange rates (e.g., OB08) and check if the necessary exchange rates are defined for the relevant currencies.
  Ensure that the rates are valid for the period you are trying to process.
  
  
  
  Review Currency Types:
  
  Check the currency types being used in your transactions and ensure they are correctly set up in the system.
  
  
  
  Check Master Data:
  
  Ensure that all necessary master data related to the currencies involved is complete and correctly maintained.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or notes related to currency translation for any specific guidance or updates that may address the issue.
  
  
  
  Testing:
  
  After making changes, perform a test run of the currency translation process to ensure that the error has been resolved.
  
  
  
  Related Information
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OB08 (Maintain Exchange Rates), SPRO (SAP Project Reference Object), and others related to currency settings.
  SAP Notes: Check for any SAP Notes that may provide additional insights or fixes related to this error.
  User Roles and Authorizations: Ensure that the user executing the currency translation has the necessary authorizations to access and modify currency settings.
  
  If the issue persists after checking these areas, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in financial modules.