How To Fix GCS120 - Allowance is greater than gross value of trade receivables

SAP Error Message - Details

• Message type: E = Error

• Message class: GCS - SAP Consolidation: Validations

• Message number: 120

• Message text: Allowance is greater than gross value of trade receivables

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message GCS120 - Allowance is greater than gross value of trade receivables ?

  The SAP error message GCS120, which states "Allowance is greater than gross value of trade receivables," typically occurs in the context of financial accounting and accounts receivable management. This error indicates that the allowance for doubtful accounts (or bad debt allowance) you are trying to set is greater than the total gross value of the trade receivables. 
  Cause:
  
  Incorrect Allowance Calculation: The allowance for doubtful accounts may have been calculated incorrectly, leading to a value that exceeds the total receivables.
  Data Entry Error: There may have been a manual entry error where the allowance was input incorrectly.
  System Configuration Issues: There could be issues with the configuration of the financial settings in SAP, leading to incorrect calculations or data handling.
  Changes in Receivables: If the gross value of trade receivables has changed (e.g., through payments received or adjustments), the allowance may no longer be valid.
  
  Solution:
  
  Review Allowance Calculation: Check the calculation of the allowance for doubtful accounts to ensure it is based on accurate and current data. Adjust the allowance to be less than or equal to the gross value of trade receivables.
  Verify Data Entry: Ensure that all entries related to trade receivables and allowances are correct. Look for any discrepancies in the amounts entered.
  Check Configuration Settings: Review the configuration settings in SAP related to accounts receivable and allowances. Ensure that they are set up correctly according to your organization's accounting policies.
  Update Receivables: If there have been recent changes to the trade receivables, ensure that these changes are reflected in the system before setting the allowance.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling this error message.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FBL5N (Customer Line Item Display) or FB50 (General Ledger Document Entry) to review and adjust entries.
  Accounting Policies: Ensure that your organization’s accounting policies regarding allowances for doubtful accounts are being followed correctly.
  Training and Support: If the issue persists, consider reaching out to your SAP support team or consulting with a financial expert familiar with SAP to resolve the issue.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the GCS120 error in SAP.