How To Fix UCD1064 - Deferred tax balance sheet items &1: Item &2 is not a balance sheet item

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 064

• Message text: Deferred tax balance sheet items &1: Item &2 is not a balance sheet item

What causes this issue?

A clearing item specified in the balance sheet items for deferred taxes
does not exist in the balance sheet.

System Response

The document cannot be posted.

How to fix this error?

Correct the clearing 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 UCD1064 - Deferred tax balance sheet items &1: Item &2 is not a balance sheet item ?

  The SAP error message UCD1064 indicates that there is an issue with the classification of a deferred tax item in the system. Specifically, it states that the item in question is not recognized as a balance sheet item, which is necessary for the deferred tax functionality to work correctly.
  Cause:
  
  Incorrect Configuration: The item referenced in the error may not be configured correctly in the system. It might not be set up as a balance sheet item in the relevant financial accounting settings.
  Master Data Issues: The master data for the account in question may not be properly defined, leading to the system not recognizing it as a balance sheet item.
  Posting Issues: There may have been incorrect postings or transactions that have led to this classification issue.
  Tax Configuration: The tax configuration settings in the system may not align with the requirements for deferred tax accounting.
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the account settings in the SAP system and verify that the account in question is set up as a balance sheet account. This can typically be done in the Financial Accounting (FI) module under the account master data.
  Ensure that the account type is set correctly (e.g., asset, liability) and that it is marked as a balance sheet item.
  
  
  
  Review Master Data:
  
  Check the master data for the specific account to ensure that all necessary fields are filled out correctly and that it is classified appropriately.
  
  
  
  Adjust Tax Configuration:
  
  Review the tax configuration settings in the system to ensure that they are set up correctly for deferred tax accounting. This may involve checking the tax codes and their associated accounts.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on deferred tax accounting and the requirements for balance sheet items.
  
  
  
  Testing:
  
  After making the necessary adjustments, perform test postings to ensure that the error does not reoccur.
  
  
  
  Seek Support:
  
  If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert who can provide more tailored assistance based on your specific configuration and setup.
  
  
  
  Related Information:
  
  Deferred Tax Accounting: This is a method used in accounting to account for taxes that are assessed but not yet paid. It is important for compliance with accounting standards.
  Balance Sheet Items: These are accounts that appear on the balance sheet, typically including assets, liabilities, and equity. Proper classification is crucial for accurate financial reporting.
  SAP Modules: This error is primarily related to the Financial Accounting (FI) module, but it may also involve the Controlling (CO) module depending on the configuration.
  
  By addressing the configuration and ensuring that the account is correctly classified, you should be able to resolve the UCD1064 error.