How To Fix SG121 - Conversion factors differ from the factors for exchange rate type 'M'

SAP Error Message - Details

• Message type: E = Error

• Message class: SG - Global Pool for Cross-Application Developments

• Message number: 121

• Message text: Conversion factors differ from the factors for exchange rate type 'M'

What causes this issue?

An exchange rate type which differs from the average rate can only be
used for FI documents if the conversion factors for this exchange rate
type agrees with those for exchange rate type M for all 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?

Try to keep the conversion factors the same as the factors for exchange
rate type 'M'.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message SG121 - Conversion factors differ from the factors for exchange rate type 'M' ?

  The SAP error message SG121 indicates that there is a discrepancy between the conversion factors defined in the system and the factors for the exchange rate type 'M' (which typically stands for the average exchange rate). This error usually arises during currency conversion processes, such as when posting transactions that involve multiple currencies.
  Cause:
  
  Mismatch in Conversion Factors: The conversion factors for the currencies involved in the transaction do not match the expected factors for the exchange rate type 'M'.
  Incorrect Configuration: The exchange rate type may not be properly configured in the system, leading to inconsistencies.
  Missing Exchange Rates: There may be missing exchange rates for the currencies involved, or the rates may not be updated.
  Currency Settings: The currency settings in the document or transaction may not align with the defined exchange rates.
  
  Solution:
  
  
  Check Exchange Rate Configuration:
  
  Go to the transaction code OB08 to view and maintain exchange rates.
  Ensure that the exchange rates for the relevant currencies are correctly defined and that the conversion factors are set appropriately.
  
  
  
  Verify Conversion Factors:
  
  Check the conversion factors for the currencies involved in the transaction. Make sure they align with the expected values for exchange rate type 'M'.
  If necessary, update the conversion factors to match the required values.
  
  
  
  Update Exchange Rates:
  
  If the exchange rates are outdated or missing, update them to reflect the current market rates.
  Ensure that the rates are maintained for the correct date and that they are valid for the period of the transaction.
  
  
  
  Review Document Currency Settings:
  
  Check the currency settings in the document or transaction that is causing the error. Ensure that the currencies are correctly specified and that they correspond to the defined exchange rates.
  
  
  
  Consult SAP Notes:
  
  Look for any relevant SAP Notes that may address this specific error. SAP frequently releases updates and patches that may resolve known issues.
  
  
  
  Testing:
  
  After making the necessary changes, test the transaction again to see if the error persists.
  
  
  
  Related Information:
  
  Transaction Codes: 
  
  OB08: Maintain exchange rates.
  FB01: Post document (to test the transaction).
  
  
  Exchange Rate Types: Understand the different exchange rate types (e.g., 'M' for average, 'B' for bank buying, etc.) and their implications on currency conversion.
  Documentation: Refer to SAP documentation for detailed information on currency conversion and exchange rate maintenance.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in financial accounting and currency management within SAP.