How To Fix UCF6165 - 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: 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 verify that the item in question (Item &1) is correctly classified as an equity item. It should be assigned to the appropriate account type (e.g., equity, retained earnings).
  If the item is not classified correctly, you may need to change its account type in the configuration settings.
  
  
  
  Review Posting Periods:
  
  Ensure that the posting period for the transaction is open. You can check this in the transaction code OB52 (Maintain Posting Periods) to see if the relevant periods are open for posting.
  
  
  
  Configuration Review:
  
  Review the configuration settings for retained earnings in the financial accounting module. Ensure that the retained earnings accounts are set up correctly and that the appropriation process is configured properly.
  You may need to consult with your SAP FI consultant or refer to the SAP documentation for specific configuration steps.
  
  
  
  Transaction Code:
  
  If you are using a specific transaction code to perform the appropriation, ensure that you are following the correct steps and that all required fields are filled out correctly.
  
  
  
  Consult SAP Notes:
  
  Check for any relevant SAP Notes that may address this specific error message. SAP Notes often provide solutions or workarounds for known issues.
  
  
  
  Related Information:
  
  SAP Documentation: Refer to the SAP Help Portal for detailed documentation on retained earnings and financial closing processes.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have found.
  Testing in a Sandbox: If possible, replicate the issue in a sandbox environment to test potential solutions without affecting the production system.
  
  By following these steps, you should be able to identify the cause of the UCF6165 error and implement the necessary solutions to resolve it.