How To Fix UCF6635 - Change to equity with sinking shares is not supported

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 635

• Message text: Change to equity with sinking shares is not supported

What causes this issue?

Regarding investee unit &V1&, you have entered for investor unit &V2& a
change in equity (activity &V3& with the number &V4&) in which the
percentage of ownership has been reduced. The system does not
automatically support changes in equity in which percentages of
ownership decrease.

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?

Instead, enter a change in equity with unchanged percentages of
ownership, and enter a partial divestiture.

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 UCF6635 - Change to equity with sinking shares is not supported ?

  The SAP error message UCF6635, "Change to equity with sinking shares is not supported," typically occurs in the context of financial transactions involving equity instruments, particularly when dealing with sinking shares. Sinking shares are a type of equity that is subject to a sinking fund provision, which requires the issuer to set aside funds to redeem shares at a future date.
  Cause:
  The error message indicates that the system does not support the specific change you are trying to make to the equity account that involves sinking shares. This could be due to several reasons, including:
  
  Configuration Issues: The system may not be configured to handle changes related to sinking shares properly.
  Transaction Type: The type of transaction you are attempting may not be compatible with the rules governing sinking shares.
  Data Integrity: There may be inconsistencies or missing data in the equity account or related records that prevent the change from being processed.
  
  Solution:
  To resolve the UCF6635 error, consider the following steps:
  
  
  Review Configuration: Check the configuration settings for equity instruments and ensure that sinking shares are set up correctly in the system. This may involve reviewing the relevant financial settings in the SAP system.
  
  
  Check Transaction Type: Ensure that the transaction you are trying to execute is appropriate for sinking shares. If necessary, consult the documentation or your SAP support team to confirm the correct transaction type.
  
  
  Data Validation: Validate the data associated with the equity account. Ensure that all required fields are filled out correctly and that there are no inconsistencies in the data.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling sinking shares and related equity transactions.
  
  
  Contact SAP Support: If the issue persists after checking the above points, consider reaching out to SAP support for assistance. They may provide insights specific to your system configuration or any known issues related to this error.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide updates to the system that could resolve the issue.
  User Forums: Engage with SAP user communities or forums where other users may have encountered similar issues and can share their solutions.
  Training and Documentation: Ensure that users involved in financial transactions are adequately trained on the handling of sinking shares and related equity transactions to minimize errors.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.