How To Fix UCF6639 - Accounting technique "equity method" is deactivated

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 639

• Message text: Accounting technique "equity method" is deactivated

What causes this issue?

The <DS:GLOS.352A9804D3895CD5E10000009B38F974>equity method</> is not
activated in <ZK>System Utilization</>.

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?

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 UCF6639 - Accounting technique "equity method" is deactivated ?

  The SAP error message UCF6639 indicates that the accounting technique "equity method" is deactivated in the system. This error typically arises in the context of financial consolidation processes, particularly when using the SAP Financial Consolidation (FC) or SAP S/4HANA for group reporting.
  Cause:
  The error occurs when:
  
  The equity method of accounting is not activated for the relevant consolidation unit or group.
  The configuration settings in the system do not allow for the use of the equity method, which is often used for investments in associates or joint ventures.
  There may be a mismatch in the settings for the consolidation method in the master data of the entities involved.
  
  Solution:
  To resolve the UCF6639 error, you can take the following steps:
  
  
  Check Configuration Settings:
  
  Navigate to the configuration settings for the consolidation application in SAP.
  Ensure that the equity method is activated for the relevant consolidation unit or group. This can typically be found in the consolidation settings under the accounting methods.
  
  
  
  Review Master Data:
  
  Check the master data of the entities involved in the consolidation. Ensure that the accounting method for the relevant entities is set to "Equity Method" where applicable.
  Verify that the consolidation method is correctly assigned in the master data.
  
  
  
  Adjust Consolidation Settings:
  
  If the equity method is not required for certain entities, consider adjusting the consolidation settings to use a different method (e.g., full consolidation or proportional consolidation) as appropriate.
  
  
  
  Consult Documentation:
  
  Refer to the SAP documentation or help resources for specific guidance on configuring the equity method in your version of SAP. This may include transaction codes or specific configuration paths.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test consolidation to ensure that the error is resolved and that the equity method is functioning as expected.
  
  
  
  Seek Support:
  
  If the issue persists after checking the configuration and master data, consider reaching out to your SAP support team or consulting with an SAP expert for further assistance.
  
  
  
  Related Information:
  
  Equity Method: This accounting technique is used to account for investments in associates and joint ventures, where the investor recognizes its share of the investee's profits or losses.
  SAP Financial Consolidation: This module is used for consolidating financial data from various entities within a corporate group.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as OBY6 (for defining consolidation methods) and CIF1 (for managing master data) that may help in troubleshooting.
  
  By following these steps, you should be able to address the UCF6639 error and ensure that the equity method is properly configured in your SAP system.