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

UCF2026 - Overview

• 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.

UCF2026 - Details

• 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