How To Fix UCF6610 - Valuation allowance item for goodwill not defined

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 610

• Message text: Valuation allowance item for goodwill not defined

What causes this issue?

The posting item for goodwill amortization has not been assigned.
Depending on the setting in system utilization for consolidation of
investments, the goodwill posting items are defined:
Under <ZK>Settings -> Goodwill Global,</> or
Individually in the consolidation of investments method

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?

Add the missing goodwill posting items in Customizing for consolidation
of investments.

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 UCF6610 - Valuation allowance item for goodwill not defined ?

  The SAP error message UCF6610, which states "Valuation allowance item for goodwill not defined," typically occurs in the context of financial accounting and reporting, particularly when dealing with goodwill and its valuation allowances in the SAP system.
  Cause:
  This error usually arises when the system is unable to find a defined valuation allowance item for goodwill in the configuration settings. This can happen due to:
  
  Missing Configuration: The valuation allowance item for goodwill has not been set up in the system.
  Incorrect Settings: The settings for the valuation allowance may be incorrectly configured or not aligned with the requirements of the financial reporting standards being used.
  Data Migration Issues: If data has been migrated from another system, the necessary configurations may not have been transferred correctly.
  
  Solution:
  To resolve the UCF6610 error, you can follow these steps:
  
  
  Check Configuration:
  
  Go to the SAP Customizing Implementation Guide (IMG).
  Navigate to Financial Accounting (FI) > General Ledger Accounting > Valuation > Valuation Allowances.
  Ensure that the valuation allowance item for goodwill is defined correctly.
  
  
  
  Define Valuation Allowance Item:
  
  If the item is not defined, you will need to create it. This typically involves specifying the account that will be used for the valuation allowance related to goodwill.
  Make sure to assign the correct account type and ensure it aligns with your accounting policies.
  
  
  
  Review Financial Statement Versions:
  
  Check if the financial statement version being used includes the valuation allowance for goodwill. You may need to adjust the financial statement version settings.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help resources for specific instructions on setting up valuation allowances for goodwill.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Consult with SAP Support:
  
  If the issue persists after checking the configuration and settings, consider reaching out to SAP support for further assistance.
  
  
  
  Related Information:
  
  Goodwill Valuation: Goodwill is an intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets. Valuation allowances are necessary to account for potential impairments in goodwill.
  Financial Reporting Standards: Ensure that your configuration complies with relevant financial reporting standards (e.g., IFRS, GAAP) that dictate how goodwill and its valuation should be handled.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on configuring valuation allowances.
  
  By following these steps, you should be able to resolve the UCF6610 error and ensure that your SAP system is correctly configured to handle goodwill valuation allowances.