How To Fix GC305 - Retained earnings/BS does not equal net income/IS (in group currency)

GC305 - Overview

• Message type: E = Error

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

• Message number: 305

• Message text: Retained earnings/BS does not equal net income/IS (in group currency)

What causes this issue?

Company &V1&,
Fiscal year &V2&,
Period &V3&,
Version &V4&:
The balance, accumulated up to the desired period, has been checked for
equality across all value items on the balance sheet and the income
statement.

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?

Please check the item definitions and the existing data records, if
applicable.

Error message extract from SAP system. Copyright SAP SE.

GC305 - Details

• The SAP error message GC305 indicates a discrepancy between the retained earnings in the balance sheet (BS) and the net income in the income statement (IS) when viewed in group currency. This error typically arises during the consolidation process in SAP, particularly when dealing with financial statements of multiple entities within a group.
  Causes of GC305 Error
  
  
  Data Entry Errors: Incorrect or inconsistent data entries in the financial statements of the subsidiaries can lead to discrepancies.
  
  
  Currency Translation Issues: Differences in currency conversion rates or incorrect currency settings can affect the reported figures in group currency.
  
  
  Timing Differences: If the financial data is not updated or consolidated at the same time, it can lead to mismatches.
  
  
  Incorrect Configuration: Issues with the configuration of the consolidation settings in SAP can lead to errors in how retained earnings and net income are calculated.
  
  
  Unposted Transactions: Transactions that have not been posted or are in a pending state can