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Arithmetic overflow error converting type to data type numeric

This error usually occurs when the type you are trying to convert to a decimal or numeric is larger than the column or casted type you are converting to.

Ex.

insert into tablename (decnumber) values (cast(1000.00 as decimal(5,2)))

Since the number specifed is 7 digits long include after the decimal and the converted type can only contain a maximum of 5 digits, you will receive this error.

Changing the table to hold 7,2 and/or changing this in the cast will resolve it.

References
devshed (forums), http://forums.devshed.com/ms-sql-development-95/arithmetic-overflow-error-converting-numeric-to-data-type-numeric-89157.html