How To Fix UCF6162 - Appropriation of retained earnings: Item &1 is not an equity item

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 162

• Message text: Appropriation of retained earnings: Item &1 is not an equity item

What causes this issue?

In the Customizing settings for the current consolidation area, you have
activated the <LS>appropriation of retained earnings in the balance
sheet</> setting. Item &V1&, which is specified in the Customizing
settings for <LS>appropriation of retained earnings</> on the <LS>
Distribution of Dividends</> or <LS>Bonus Payment</> tab page, must
therefore be an equity item.

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?

Assign an equity 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 UCF6162 - Appropriation of retained earnings: Item &1 is not an equity item ?

  The SAP error message UCF6162 indicates that there is an issue with the appropriation of retained earnings, specifically that the item referenced (Item &1) is not classified as an equity item. This error typically arises during the year-end closing process or when attempting to allocate retained earnings in the financial closing process.
  Cause:
  
  Incorrect Item Classification: The item you are trying to appropriate is not set up as an equity item in the system. In SAP, retained earnings must be allocated to items that are classified as equity.
  Configuration Issues: There may be a configuration issue in the chart of accounts or the financial statement version that does not properly classify the item as an equity item.
  Data Entry Errors: There could be a mistake in the data entry where the wrong item is selected for appropriation.
  
  Solution:
  
  
  Check Item Classification:
  
  Go to the relevant configuration settings in SAP (Transaction Code: OBY6 or similar) and verify that the item in question is correctly classified as an equity item.
  Ensure that the item is included in the equity section of your chart of accounts.
  
  
  
  Review Appropriation Settings:
  
  Check the settings for retained earnings appropriation in the system. Ensure that the items you are trying to use for appropriation are valid and correctly configured.
  
  
  
  Correct Data Entry:
  
  If the wrong item was selected, correct the entry and try the appropriation process again.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help files related to retained earnings and equity items to ensure compliance with the system's requirements.
  
  
  
  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:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBY6 (for chart of accounts) and OKEQ (for equity items).
  SAP Notes: Check for any SAP Notes related to this error message for additional guidance or patches that may address the issue.
  User Forums: Engage with SAP community forums or user groups where similar issues may have been discussed, and solutions shared.
  
  By following these steps, you should be able to resolve the UCF6162 error and successfully appropriate retained earnings in your SAP system.