How To Fix UCF4016 - Method step "&1": Processing type "Assets Held for Sale" is not permitted

UCF4016 - Overview

• Message type: E = Error

• Message class: UCF4 - Messages on Reclassification

• Message number: 016

• Message text: Method step "&1": Processing type "Assets Held for Sale" is not permitted

What causes this issue?

In method step &V1&, you selected processing type <LS>Equity-Method
Investee Units Held for Sale</> in the selection for the trigger.
However, in the system utilization for consolidation of investments, you
have <ZH>not</> activated the accounting technique <LS>Equity Method</>.

System Response

The Customizing settings for the reclassification method are incorrect
and cannot be saved.

How to fix this error?

Activate the equity method in the system utilization for the
consolidation of investments or select a different processing type for
assets held for sale. In each method step, you must specify the same
value for the processing type for assets held for sale.

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 UCF4016 - Method step "&1": Processing type "Assets Held for Sale" is not permitted ?

  The SAP error message UCF4016 indicates that there is an issue with processing assets that are classified as "Assets Held for Sale." This error typically arises in the context of asset accounting when trying to perform certain operations on these assets that are not allowed by the system.
  
  Cause:
  The error message UCF4016 is triggered when:
  
  Processing Type Restrictions: The processing type for "Assets Held for Sale" is restricted in the system. This means that certain operations (like depreciation, transfers, or disposals) are not permitted for assets classified in this category.
  
  Configuration Issues: The configuration settings in the asset accounting module may not allow for the processing of assets held for sale in the way you are attempting.
  Incorrect Asset Classification: The asset may not be correctly classified as "Held for Sale," or there may be inconsistencies in the asset master data.
  
  
  Solution:
  To resolve the UCF4016 error, consider the following steps:
  
  
  Review Asset Classification:
  
  Check the asset master