How To Fix UCF6405 - First consolidation adjustment: no goodwill from first consolidation

UCF6405 - Overview

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 405

• Message text: First consolidation adjustment: no goodwill from first consolidation

What causes this issue?

You have entered the <ZK>First Consolidation Adjustment</> activity
(activity number &V3&) for investee unit &V1&. There is no goodwill from
the first consolidation for this investee unit in consolidation group
&V2&.

System Response

The system generates the goodwill entry in the additional financial data
for the activity <ZK>First Consolidation Adjustment</> like in a first
consolidation:
<ZK>Negative Goodwill</> indicator: In accordance with the debit/credit
sign of the differential
Treatment of Goodwill: According to the setting for positive or negative
goodwill in the consolidation of investments method

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.

UCF6405 - Details

• The SAP error message UCF6405, "First consolidation adjustment: no goodwill from first consolidation," typically occurs in the context of financial consolidation processes within SAP, particularly when dealing with the consolidation of subsidiaries or business units. This error indicates that there is an issue related to the calculation or recognition of goodwill during the first consolidation of a subsidiary.
  
  Cause:
  
  Missing Goodwill Data: The error often arises when there is no goodwill recorded for the entity being consolidated. Goodwill is the excess of the purchase price over the fair value of the identifiable net assets acquired in a business combination.
  Incorrect Configuration: The configuration settings for the consolidation process may not be set up correctly, leading to the system not recognizing or calculating goodwill.
  Data Entry Issues: There may be missing or incorrect data entries in the master data or transaction data related to the acquisition of the subsidiary.
  Timing Issues: The consolidation process may be