Retained earnings/annual net income differ in B/S and I/S for &1 (LC)

What causes this issue?

For consolidation unit &V1&, the retained earnings and annual net
income were calculated by summing up the balance sheet and the income
statement. This resulted in two different values in local currency.
Thus, the data contains an error.

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?

Sometimes the reported data can contain balance sheet and income
statement totals that are principally different. For example, this
often occurs in business area or profit center consolidation because
the balance sheet data is incomplete. When this occurs, you have the
option of posting the difference between the income statement total and
the balance sheet total to a balance sheet item. Note: If you defined a
balancing adjustment item in IMG, and the consolidation unit has the
integrated consolidation type "business area consolidation" or "profit
center consolidation", the system automatically determines a balancing
adjustment and posts it.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.