How To Fix UCF6358 - Investee unit &1: Neg. shareholders' equity not automatically supported

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 358

• Message text: Investee unit &1: Neg. shareholders' equity not automatically supported

What causes this issue?

You have assigned consolidation of investments method &V3& to investee
unit &V1& in consolidation group &V2&. In consolidation of investments
method &V3&, you have configured that acquisitions are calculated with
direct shares.
If you have activated the <LS>No Minority Interest</> function in the
settings for for negative stockholders' equity (globally or in the
consolidation of investments method), the system suppresses in the
purchase method the reporting of minority interests on equity for those
items for which the cumulative value of the reported equity is negative.
If the cumulative value becomes positive again due to further data
reporting, the system adjusts the minority interest so that the
cumulative value corresponds to the current group share.
The adjustment of the minority interest to the current group share only
makes sense if acquisitions are calculated with group shares.

System Response

The system prevents execution of the <LS>Minority Interest for Equity</>
by issuing an error message.
During execution of automatic consolidation of investments, the system
runs the special logic for negative shareholders' equity for investee
units consolidated with the purcahse method only in the <LS>Subsequent
Consolidation</> activity.

How to fix this error?

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

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 UCF6358 - Investee unit &1: Neg. shareholders' equity not automatically supported ?

  The SAP error message UCF6358 indicates that there is an issue with the investee unit's negative shareholders' equity, which is not automatically supported in the context of consolidation. This error typically arises in the SAP Financial Consolidation module when trying to process financial data for a company that has negative equity.
  Cause:
  
  Negative Shareholders' Equity: The investee unit has a negative shareholders' equity, which can occur due to accumulated losses or other financial issues.
  Consolidation Settings: The consolidation settings may not be configured to handle negative equity situations properly.
  Data Entry Errors: There may be errors in the financial data entered for the investee unit, leading to incorrect calculations of equity.
  Accounting Standards: The accounting standards or policies in use may not allow for the automatic processing of negative equity in consolidations.
  
  Solution:
  
  Review Financial Data: Check the financial statements of the investee unit to ensure that the data is accurate and that the negative equity is valid.
  Adjust Consolidation Settings: Modify the consolidation settings in SAP to allow for the handling of negative shareholders' equity. This may involve changing parameters in the consolidation configuration.
  Manual Adjustments: If automatic processing is not supported, consider making manual adjustments to the consolidation entries to reflect the negative equity appropriately.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling negative equity in your version of SAP.
  Engage with SAP Support: If the issue persists, consider reaching out to SAP support for assistance, especially if this is a recurring problem.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates and patches.
  Consolidation Guidelines: Review the guidelines for financial consolidation in your organization to ensure compliance with accounting standards.
  Training and Resources: Consider training for users involved in the consolidation process to better understand how to handle complex scenarios like negative equity.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the UCF6358 error and proceed with the consolidation process.