How To Fix UCF2026 - C/T differences that affect net income require special rounding

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF2 - Messages for Currency Translation

• Message number: 026

• Message text: C/T differences that affect net income require special rounding

What causes this issue?

In one or more method steps (particularly &V1&), the selection condition
includes items that have an
<DS:GLOS.615F0191A481D511B1250008C784EFB1>item type</> that differs from
that of the differential assignment. This means that it is possible
thatcurrency translation differences may occur, depending on what data
is translated.
Automatic treatment of effects on net income within currency translation
requires that the <ZK>currency translation indicator</> characteristic
is contained in the data stream for totals records and in the current
consolidation area. However, this is not the case.

System Response

If currency translation differences that affect net income are incurred
when currency translation is executed, these are disclosed separately in
the audit trail but treated as ordinary currency translation differences
during posting.

How to fix this error?

Check if you want to permit currency translation differences that affect
net income.
Check if you want automatic treatment of effects on net income within
currency translation. If you do, add the currency translation indicator
to the <DS:GLO.D5692F24DA2CD511BCBF0800060D9C68>consolidation area</>.
If not, define and assign a suitable rounding method to ensure that
rounding entries offset any incurred effects on net income.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message UCF2026 - C/T differences that affect net income require special rounding ?

  The SAP error message UCF2026 indicates that there are currency translation (C/T) differences that affect net income and require special rounding. This typically occurs in the context of financial reporting and currency conversion processes within SAP, particularly when dealing with foreign currency transactions and consolidations.
  Cause:
  
  
  Currency Translation Differences: This error arises when there are discrepancies in the currency translation process, particularly when converting financial statements from one currency to another. These discrepancies can occur due to differences in exchange rates used for different transactions or periods.
  
  
  Rounding Issues: The error may also be triggered by rounding differences that occur during the conversion of amounts from one currency to another. If the rounding does not align with the expected financial reporting standards or configurations, it can lead to this error.
  
  
  Configuration Settings: Incorrect settings in the currency translation configuration or in the financial reporting settings can also lead to this error. This includes settings related to how rounding is handled in the system.
  
  
  Solution:
  
  
  Review Currency Translation Settings: Check the configuration settings for currency translation in SAP. Ensure that the settings for rounding and currency conversion are correctly defined according to your organization's financial policies.
  
  
  Adjust Rounding Rules: If rounding rules are causing the issue, consider adjusting them. This may involve changing the way amounts are rounded during currency conversion or ensuring that the same rounding method is applied consistently across all transactions.
  
  
  Re-run Currency Translation: After making any necessary adjustments, re-run the currency translation process to see if the error persists. This can help to ensure that any discrepancies are resolved.
  
  
  Check for Manual Adjustments: If manual adjustments have been made to financial statements or transactions, verify that these adjustments are consistent with the currency translation rules and do not introduce further discrepancies.
  
  
  Consult Documentation: Refer to SAP documentation or support resources for specific guidance on handling UCF2026 errors. This may provide additional insights or steps tailored to your version of SAP.
  
  
  Engage SAP Support: If the issue persists after attempting the above solutions, consider reaching out to SAP support for assistance. They can provide more detailed troubleshooting based on your specific system configuration and version.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates and patches that could resolve the issue.
  Financial Reporting Standards: Ensure that your currency translation practices align with applicable financial reporting standards (e.g., IFRS, GAAP) to avoid discrepancies.
  Training and Documentation: Ensure that users involved in financial reporting and currency translation are adequately trained and have access to documentation that outlines the processes and configurations in SAP.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the UCF2026 error and ensure accurate financial reporting in SAP.