How To Fix GK520 - Splitting differences requires an exchange rate indicator (method &1)

SAP Error Message - Details

• Message type: E = Error

• Message class: GK - Messages for SAP Consolidation

• Message number: 520

• Message text: Splitting differences requires an exchange rate indicator (method &1)

What causes this issue?

Method for interunit elimination &V1& should execute a splitting of
differences. An exchange rate indicator must be entered for the
currency translation of data reported in transaction currency into
group currency. Currency translation occurs for the exchange rate of
the exchange rate type, which is validly assigned to this exchange rate
indicator. However no exchange rate indicator is specified for method
&V1&.

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?

Check whether method &V1& should really execute a splitting of
differences. If this applies then enter an exchange rate indicator in
the further control options.

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 GK520 - Splitting differences requires an exchange rate indicator (method &1) ?

  The SAP error message GK520, which states "Splitting differences requires an exchange rate indicator (method &1)," typically occurs in the context of financial transactions involving foreign currency. This error indicates that the system is unable to process a transaction because it lacks the necessary exchange rate information to handle currency differences during splitting.
  Cause:
  
  Missing Exchange Rate Indicator: The error is primarily caused by the absence of an exchange rate indicator in the configuration for the relevant transaction or document. This indicator is necessary for the system to determine how to handle currency conversions and differences.
  Incorrect Configuration: The configuration settings for the currency translation or the splitting method may not be set up correctly, leading to the system being unable to find the required exchange rate.
  Transaction Type: The specific transaction type being processed may not have the appropriate settings for handling currency differences.
  
  Solution:
  
  
  Check Configuration:
  
  Go to the configuration settings in SAP (Transaction SPRO) and navigate to the relevant area for currency translation or splitting methods.
  Ensure that the exchange rate indicator is defined for the method being used (indicated by &1 in the error message).
  
  
  
  Define Exchange Rate Indicator:
  
  If the exchange rate indicator is missing, you may need to define it. This can typically be done in the following path:
  
  Financial Accounting (FI) > Financial Accounting Global Settings > Currencies > Define Exchange Rate Types.
  
  
  Ensure that the exchange rate type is correctly assigned to the relevant transaction or document type.
  
  
  
  Review Document Settings:
  
  Check the specific document or transaction that triggered the error. Ensure that it has the correct currency settings and that the exchange rate is available for the currencies involved.
  
  
  
  Test with Different Transactions:
  
  If possible, test the transaction with different currencies or settings to see if the error persists. This can help identify if the issue is specific to certain conditions.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for additional guidance on configuring exchange rates and handling currency differences.
  
  
  
  Contact SAP Support:
  
  If the issue persists after checking the configuration and settings, consider reaching out to SAP support for further assistance.
  
  
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OB08 (Maintain Exchange Rates) and SPRO (SAP Project Reference Object) for configuration.
  Currency Types: Understand the different types of currencies (local, group, and transaction currencies) and how they interact in financial transactions.
  Splitting Methods: Review the splitting methods used in your organization to ensure they are correctly configured to handle currency differences.
  
  By following these steps, you should be able to resolve the GK520 error and ensure that your SAP system can properly handle currency differences in financial transactions.