How To Fix UCF6036 - Goodwill global: 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: 036

• Message text: Goodwill global: Item &1 is not a balance sheet item

What causes this issue?

The items you specify as "original items and offsetting items" or as
"valuation allowances items" under "Goodwill Global" on tab pages
"Amortization of Goodwill" and "Amortization of Neg. Goodwill" must all
have the <DS:GLOS.615F0191A481D511B1250008C784EFB1>item type</> "Balance
Sheet". Furthermore, with the exception of the "Statistical Items", all
of the items on tab pages "Direct Elimination of Goodwill", "Direct
Elimination of Neg. Goodwill", "Periodic Reduction of Goodwill", and
"Periodic Reduction of Neg. Goodwill" must also have the item type
"Balance Sheet".
However, you have specified item &V1&, which 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&, 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 UCF6036 - Goodwill global: Item &1 is not a balance sheet item ?

  The SAP error message UCF6036, which states "Goodwill global: Item &1 is not a balance sheet item," typically occurs in the context of financial reporting and consolidation processes, particularly when dealing with goodwill in the Universal Journal or during the consolidation of financial statements.
  Cause:
  This error usually arises when:
  
  Incorrect Configuration: The item referenced (denoted as &1 in the error message) is not configured as a balance sheet item in the system. In SAP, certain accounts must be designated as balance sheet accounts to be used in specific financial processes, such as goodwill calculations.
  Data Entry Issues: There may be a data entry error where a non-balance sheet item is mistakenly being treated as a balance sheet item.
  Master Data Issues: The account master data for the item may not be set up correctly, leading to it not being recognized as a balance sheet item.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Account Configuration:
  
  Go to the account master data (transaction code FS00) and check the configuration of the account associated with item &1.
  Ensure that the account is set up as a balance sheet account. This can be verified in the account type settings.
  
  
  
  Review Financial Statement Version:
  
  Check the financial statement version settings to ensure that the account is included in the correct financial statement structure.
  
  
  
  Adjust Data Entry:
  
  If the error is due to incorrect data entry, correct the entries to ensure that only balance sheet items are being processed in the context of goodwill.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources related to goodwill and balance sheet items to ensure compliance with the required configurations.
  
  
  
  Contact SAP Support:
  
  If the issue persists after checking the above points, consider reaching out to SAP support for further assistance, especially if this is a recurring issue.
  
  
  
  Related Information:
  
  Goodwill Accounting: Goodwill is an intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets. Proper accounting for goodwill is crucial for accurate financial reporting.
  Balance Sheet Items: In SAP, balance sheet items are accounts that reflect the financial position of a company at a specific point in time, including assets, liabilities, and equity.
  SAP Transactions: Familiarize yourself with relevant SAP transactions such as FS00 (to manage account master data) and OB52 (to manage posting periods) for better control over financial data.
  
  By following these steps, you should be able to identify and rectify the cause of the UCF6036 error in your SAP system.