How To Fix UCF6165 - Appropriation of retained earnings: Item &1 is not an equity item

UCF6165 - Overview

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 165

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

What causes this issue?

In the system utilization for consolidation of investments, you have
selected the <LS>Appropriation of Retained Earnings</> function. In this
case, you can define the appropriation items in the settings for <LS>
Appropriation of Retained Earnings</> on the following tab pages in the
left-hand column respectively:
<LS>Group Adjustments</>
<LS>Minority Adjustments</>
The appropriation items must be a subset of the equity items. However,
item &V1& is not an equity item because you have <ZH>not</> entered this
item in the settings for <LS>Equity</> on the <LS>Statistical Equity</>
tab page.

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?

Specify only equity items as appropriation items.

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 UCF6165 - Appropriation of retained earnings: Item &1 is not an equity item ?

  The SAP error message UCF6165 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 defined as an equity item in the system. This could be due to incorrect configuration in the chart of accounts or the item not being set up properly in the financial accounting module.
  Posting Period Issues: The posting period may not be open for the transaction you are trying to execute, leading to restrictions on certain types of postings.
  Configuration Errors: There may be issues with the configuration of the retained earnings accounts or the settings in the financial closing cockpit.
  
  
  Solution:
  
  
  Check Item Classification:
  
  Go to the chart of accounts and