Have you tried putting the BEGIN tag of the sproc before the SET statement? And I dont know if you can "initialize" a cursor this way, never seen that one before...CREATE PROCEDURE SP_HBS_LHP_ABF_GBRA (@V_OUTPUT CURSOR VARYING OUTPUT, @pBLIV_ID CHAR(12)) ASBEGIN /* removed code */ SET @V_OUTPUT = CURSOR FOR SELECT BLIV_ID, INID_BLEI_NAME, INID_BLEI_ADDR1, INID_BLEI_ADDR2, INID_BLEI_ADDR3, INID_BLEI_CITY, INID_BLEI_STATE, INID_BLEI_ZIP, GRGR_ID, SGSG_ID, BLIV_CREATE_DTM, BLBL_DUE_DT, BLBL_END_DT, INPA_PREV_NET_DUE, ATCT_FIRST_NAME, ATCT_LAST_NAME, SUM_INPA_RCPT_AMT FROM #tmp_abf_grp_bill /* Removed code */ OPEN @V_OUPUTEND
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