I serg, this is the errors message when i run it on Query Analyzer
my store proc1 sp_School_EnrollNewStudent called spUpdateTranJournalEntries in which both are wraped inside a transaction . maybe nested transaction because spUpdateTranJournalEntries is wraped by transaction and sp_School_EnrollNewStudent as well.
I want my app to recover despite errors on other store proc called. Still my ref. variable @hasError does not return correct values. using

ry 
lnError = 0
   SQLEXEC(oConn.nConnHandle,"EXEC proc1 ?@lnError")

  ** lnError must be .t. in case of any error
...

ROLLBACK at spUpdateTranJournalEntries
Server: Msg 6401, Level 16, State 1, Procedure spUpdateTranJournalEntries, Line 4555
Cannot roll back T_updateTranJournal. No transaction or savepoint of that name was found.
Server: Msg 266, Level 16, State 2, Procedure spUpdateTranJournalEntries, Line 65535
Transaction count after EXECUTE indicates that a COMMIT or ROLLBACK TRANSACTION statement is missing. Previous count = 1, current count = 2.
ERROR on spUpdateTranJournalEntries

COMMIT at spUpdateTranJournalEntries
Rollback on sp_School_EnrollNewStudent

thank you
Simplicio