How To Fix UCF6037 - Goodwill global: Item &1 is not an income statement item

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 037

• Message text: Goodwill global: Item &1 is not an income statement item

What causes this issue?

The items you specify as "Amortization and Writeup Item" (under
"Goodwill Global" on the "GW Amortization" tab or the "Amortize Neg.
GW" tab) must all have the
<DS:GLOS.615F0191A481D511B1250008C784EFB1>item type</> "Income
Statement".
However, you specified item &V1&, which does not have the item type
"Income Statement".

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 UCF6037 - Goodwill global: Item &1 is not an income statement item ?

  The SAP error message UCF6037, which states "Goodwill global: Item &1 is not an income statement item," typically occurs in the context of financial reporting, particularly when dealing with goodwill and other intangible assets in the SAP system. This error indicates that the item referenced (denoted by &1) is not classified as an income statement item, which is necessary for the operation being performed.
  Cause:
  
  Incorrect Item Classification: The item in question may not be correctly classified in the chart of accounts. It might be categorized as a balance sheet item rather than an income statement item.
  Configuration Issues: There may be configuration issues in the financial accounting settings that prevent the system from recognizing the item as valid for the operation being performed.
  Data Entry Errors: There could be a mistake in the data entry where the item was incorrectly defined or used in the transaction.
  
  Solution:
  
  
  Check Item Classification:
  
  Go to the chart of accounts and verify the classification of the item. Ensure that it is set up as an income statement item if it is supposed to be used in that context.
  You can do this by navigating to the relevant configuration settings in SAP (Transaction Code: OBY6 for chart of accounts).
  
  
  
  Review Configuration Settings:
  
  Check the configuration for financial statement versions and ensure that the item is included in the correct financial statement version.
  Ensure that the item is properly linked to the correct financial statement item category.
  
  
  
  Correct Data Entry:
  
  If the item was incorrectly entered, correct the entry in the relevant master data or transaction.
  Ensure that all relevant fields are filled out correctly and that the item is being used in the appropriate context.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for specific guidance on handling goodwill and income statement items.
  
  
  
  Seek Help from SAP Support:
  
  If the issue persists after checking the above points, consider reaching out to SAP support or your internal SAP team for further assistance.
  
  
  
  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 essential for accurate financial reporting.
  Financial Statement Versions: In SAP, financial statement versions define how financial data is presented in reports. Ensure that the items are correctly mapped in these versions.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBY6 (Chart of Accounts), OBC4 (Financial Statement Versions), and others that may help in troubleshooting.
  
  By following these steps, you should be able to resolve the UCF6037 error and ensure that your financial reporting is accurate and compliant with accounting standards.