How To Fix UCF6355 - Global negative equity: Item &1 cannot be an equity item

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 355

• Message text: Global negative equity: Item &1 cannot be an equity item

What causes this issue?

You have specified the &V1& item in Customizing for the global settings
for negative stockholders' equity as a clearing item for equity or
minority interest.
In addition, you have entered the &V1& item in the Customizing settings
for equity as an equity item.
The items that you specify in the Customizing settings for negative
stockholders' equity are not reporting items for equity, but posting
items for automatic consolidation of investments. Consequently, you may
<ZH>not</> enter these items in the Customizing settings for equity.

System Response

Customizing for the global settings for negative stockholders' equity is
inconsistent and cannot be saved.

How to fix this error?

Specify in the Customizing settings for negative stockholders' equity
only balance sheet items that you have <ZH>not</> defined as equity
items.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message UCF6355 - Global negative equity: Item &1 cannot be an equity item ?

  The SAP error message UCF6355, which states "Global negative equity: Item &1 cannot be an equity item," typically occurs in the context of financial accounting and reporting within SAP, particularly when dealing with equity items in the Universal Journal (ACDOCA) or in the context of financial statements.
  Cause:
  This error generally arises when there is an attempt to classify a financial item as an equity item, but the system detects that the item does not meet the criteria for equity. This can happen due to several reasons:
  
  Incorrect Configuration: The item may not be properly configured in the system to be recognized as an equity item.
  Negative Equity Situation: The system may be detecting a situation where the overall equity is negative, and thus it does not allow for the classification of certain items as equity.
  Data Entry Errors: There may be incorrect data entries or postings that lead to this classification issue.
  Inconsistent Account Types: The account type assigned to the item may not be compatible with equity classifications.
  
  Solution:
  To resolve the UCF6355 error, you can take the following steps:
  
  
  Review Account Configuration:
  
  Check the configuration of the account associated with item &1. Ensure that it is set up correctly as an equity account in the chart of accounts.
  Verify that the account type is appropriate for equity items.
  
  
  
  Check for Negative Equity:
  
  Analyze the overall equity situation in your financial statements. If the equity is negative, you may need to address the underlying issues causing this situation.
  Review the balance sheet and ensure that all equity items are correctly classified and that there are no erroneous postings.
  
  
  
  Correct Data Entries:
  
  Review the transactions related to the item in question. Look for any incorrect postings or entries that may have led to the error.
  If necessary, reverse or correct any erroneous transactions.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on equity item classifications and the implications of negative equity.
  
  
  
  Engage with SAP Support:
  
  If the issue persists after checking the above points, consider reaching out to SAP support for further assistance. They can provide insights based on the specific configuration and version of your SAP system.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional context.
  Financial Reporting: Familiarize yourself with the financial reporting standards and guidelines that apply to equity classifications in your organization.
  Training: Consider training for users involved in financial postings to ensure they understand the implications of equity classifications and how to avoid common errors.
  
  By following these steps, you should be able to identify the root cause of the UCF6355 error and implement the necessary corrections to resolve it.