How To Fix UCF6061 - Appr. retained earnings: 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: 061

• Message text: Appr. retained earnings: Item &1 is not an income statement item

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

What causes this issue?

In <DS:GLOS.D5692F24DA2CD511BCBF0800060D9C68>consolidation area</> &v2&
you determined that appropriations of retained earnings are to be
disclosed in the income statement. This is why all items you specify
under Appropriation of Retained Earnings on the following tab pages must
have the <DS:GLOS.615F0191A481D511B1250008C784EFB1>item type</> "income
statement":
"Group Adjustments"
"Minority Adjustments"
"Distribution of Dividends"
"Bonus Payment"
However, there is one exception: The equity items on tab page "Group
Adjustments" and the investment and equity items on tab page "Minority
Adjustments" must have the item type "balance sheet".
You specified item &V1&, which has a different item type.

System Response

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 UCF6061 - Appr. retained earnings: Item &1 is not an income statement item ?

  The SAP error message UCF6061, which states "Appr. retained earnings: Item &1 is not an income statement item," typically occurs during the process of closing the financial year or when trying to post to retained earnings. This error indicates that the system is expecting an income statement item (like revenue or expenses) but has encountered an item that does not qualify as such.
  Cause:
  
  
  Incorrect Account Type: The account specified (represented by &1 in the error message) is not classified as an income statement account. In SAP, accounts are categorized into balance sheet accounts and income statement accounts. Retained earnings should only be derived from income statement accounts.
  
  
  Configuration Issues: The configuration of the financial statement version or the chart of accounts may not be set up correctly, leading to the system not recognizing the account as an income statement item.
  
  
  Posting Errors: There may have been incorrect postings to the account in question, or it may have been set up incorrectly in the system.
  
  
  Solution:
  
  
  Check Account Configuration:
  
  Go to the account in question and verify its configuration in the chart of accounts. Ensure that it is set up as an income statement account.
  You can check this in the SAP transaction code FS00 (G/L Account Master Record) and ensure that the account type is set correctly.
  
  
  
  Review Financial Statement Version:
  
  Check the financial statement version configuration in transaction code OB58. Ensure that the account is included in the correct section of the financial statement version.
  
  
  
  Correct Posting:
  
  If there are incorrect postings, you may need to reverse or correct those entries. Ensure that all postings to retained earnings are coming from valid income statement accounts.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or consult with your SAP support team for specific guidance related to your configuration and setup.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test run of the year-end closing process to ensure that the error does not reoccur.
  
  
  
  Related Information:
  
  
  Transaction Codes: 
  
  FS00: G/L Account Master Record
  OB58: Financial Statement Version
  F.01: Financial Statements
  S_ALR_87012284: Balance Sheet and P&L Statement
  
  
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  
  
  User Roles: Ensure that you have the necessary authorizations to make changes to account configurations and perform year-end closing activities.
  
  
  By following these steps, you should be able to resolve the UCF6061 error and successfully complete your financial closing processes.