How To Fix UCF6031 - Push-down goodwill: Item &1 is not a balance sheet item

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 031

• Message text: Push-down goodwill: Item &1 is not a balance sheet item

What causes this issue?

The items you specify under "Push-down Goodwill: Reserves" must all
have the item type "Balance Sheet".
Item &V1&, which you specified for the activity &V2&, does not have the
item type "Balance Sheet".

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Either change the item type of item &V1& for the activity &v2&, or do
not use this item.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message UCF6031 - Push-down goodwill: Item &1 is not a balance sheet item ?

  The SAP error message UCF6031, which states "Push-down goodwill: Item &1 is not a balance sheet item," typically occurs in the context of financial consolidation processes, particularly when dealing with push-down accounting for goodwill in SAP S/4HANA or SAP Business Suite.
  Cause:
  This error arises when the system attempts to process a goodwill item that is not classified as a balance sheet item. In SAP, certain financial items must be categorized correctly to ensure that they can be processed in the context of balance sheet reporting and consolidation. If the item in question (denoted as &1 in the error message) is not set up correctly in the system, it will trigger this error.
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Item Configuration:
  
  Go to the configuration settings for the financial item that is causing the error. Ensure that it is correctly classified as a balance sheet item.
  You can check this in the SAP system by navigating to the relevant financial master data or configuration settings.
  
  
  
  Adjust Item Settings:
  
  If the item is not set up as a balance sheet item, you may need to adjust its settings. This could involve changing its account type or ensuring it is included in the correct financial statement version.
  
  
  
  Review Push-Down Goodwill Settings:
  
  Ensure that the push-down goodwill settings in your consolidation configuration are correctly defined. This includes checking the settings for how goodwill is treated during the consolidation process.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on configuring balance sheet items and handling push-down goodwill.
  
  
  
  Testing:
  
  After making the necessary adjustments, perform a test run of the consolidation process to ensure that the error is resolved.
  
  
  
  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 system configuration.
  
  
  
  Related Information:
  
  Push-Down Accounting: This is an accounting method used in business combinations where the goodwill is allocated to the acquired entity's financial statements.
  Balance Sheet Items: These are accounts that represent the financial position of a company at a specific point in time, including assets, liabilities, and equity.
  SAP Financial Consolidation: This involves the process of combining financial data from different entities within a group to produce consolidated financial statements.
  
  By ensuring that all financial items are correctly classified and configured, you can avoid this error and ensure smooth financial consolidation processes in SAP.