How To Fix UCD1061 - Deferred Tax - Balance Sheet: Balancing adjustment and trigger item exist

SAP Error Message - Details

• Message type: E = Error

• Message class: UCD1 - Messages for Document and Breakdown Check

• Message number: 061

• Message text: Deferred Tax - Balance Sheet: Balancing adjustment and trigger item exist

What causes this issue?

The system wants to derive the posting items for deferred taxes from the
original line items of the document that contain balance sheet items.
The document contains line items for multiple consolidation units, but
the entries per consolidation unit do not balance (when disregarding the
values for any <LS>clearing item for consolidation units</>, if such
item exists). Therefore, the system needs to derive the posting items
for deferred taxes for a given consolidation unit also from the original
line items of other consolidation units. When this is done, the system
uses the values of the original line items with income statement items
during the weighting process. In the present case, the document
additionally contains one or more line items in the balance sheet that
also trigger the posting of deferred taxes in the balance sheet without
an effect on net income. However, the system cannot determine which of
the balance sheet line items are not the cause of the financial
statement imbalance.

System Response

The system makes the assumption that all original line items with
balance sheet items are related to the financial statement imbalance,
and thus posts the deferred taxes to those consolidation units with a
financial statement imbalance.

How to fix this error?

This constellation can occur when multiple business transactions are
posted in a single document. By distributing the business transactions
to different posting documents, you can enable the system to determine
each individual clearing line item.

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.

Smart SAP Assistant

• What is the cause and solution for SAP error message UCD1061 - Deferred Tax - Balance Sheet: Balancing adjustment and trigger item exist ?

  The SAP error message UCD1061, which states "Deferred Tax - Balance Sheet: Balancing adjustment and trigger item exist," typically occurs in the context of deferred tax accounting within the SAP system. This error indicates that there is a discrepancy in the deferred tax calculations, specifically that there are both a balancing adjustment and a trigger item present, which should not occur simultaneously.
  Cause:
  
  Balancing Adjustment: This refers to an adjustment made to ensure that the deferred tax balances are correct. It is usually a manual or automatic adjustment to align the deferred tax accounts.
  Trigger Item: This is an item that initiates a deferred tax calculation, such as a transaction that affects the tax base of an asset or liability.
  Conflict: The error arises when both a balancing adjustment and a trigger item exist for the same account or transaction, leading to conflicting information in the deferred tax calculations.
  
  Solution:
  To resolve the UCD1061 error, you can follow these steps:
  
  Review Deferred Tax Items: Check the deferred tax items in the balance sheet to identify the balancing adjustment and the trigger item that are causing the conflict.
  Adjust Entries: Depending on your findings, you may need to:
  
  Remove or adjust the balancing adjustment if it is not necessary.
  Ensure that the trigger item is correctly set up and does not conflict with existing adjustments.
  
  
  Consult Documentation: Refer to SAP documentation or your organization's accounting policies regarding deferred tax to ensure compliance and correct handling of adjustments.
  Run Reports: Use SAP reports to analyze deferred tax balances and adjustments to identify discrepancies.
  Consult with Finance Team: If you are unsure about the adjustments, consult with your finance or accounting team to ensure that the correct entries are made.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional guidance or patches related to this error.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  OB40: For maintaining tax codes.
  F.01: For financial statement reports.
  UCD1: For deferred tax reporting.
  
  
  Training: Consider training sessions or resources on deferred tax accounting in SAP to better understand the implications of adjustments and trigger items.
  
  By following these steps, you should be able to identify and resolve the cause of the UCD1061 error in your SAP system.