How To Fix UCF6657 - Negative stockholders' equity per method defined

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 657

• Message text: Negative stockholders' equity per method defined

What causes this issue?

The special logic for negative stockholders' equity is defined per
consolidation of investments method 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 UCF6657 - Negative stockholders' equity per method defined ?

  The SAP error message UCF6657, which indicates "Negative stockholders' equity per method defined," typically arises in the context of financial accounting and reporting within the SAP system. This error suggests that the stockholders' equity calculated based on the defined method is negative, which is not permissible in standard accounting practices.
  Cause:
  
  Incorrect Configuration: The method used to calculate stockholders' equity may be incorrectly configured in the system.
  Data Entry Errors: There may be incorrect or incomplete data entries in the financial statements or related accounts.
  Negative Balances: There could be negative balances in accounts that contribute to stockholders' equity, such as retained earnings or other equity accounts.
  Posting Errors: Incorrect postings in the general ledger could lead to an imbalance in equity accounts.
  Currency Translation Issues: If multiple currencies are involved, translation errors could lead to incorrect equity calculations.
  
  Solution:
  
  Review Configuration: Check the configuration settings for the method used to calculate stockholders' equity. Ensure that all parameters are set correctly.
  Data Validation: Validate the data entries in the relevant accounts. Ensure that all transactions are correctly recorded and that there are no negative balances where they shouldn't exist.
  Correct Posting Errors: Review the general ledger for any incorrect postings that may have led to negative equity. Make necessary adjustments to correct these postings.
  Check for Negative Balances: Investigate accounts contributing to stockholders' equity to identify any negative balances. Correct these as needed.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on the UCF6657 error and the method used for equity calculation.
  Run Reports: Use financial reports to analyze the equity accounts and identify discrepancies that may be causing the error.
  
  Related Information:
  
  SAP Notes: Check SAP Notes for any known issues or patches related to this error message. SAP frequently updates its system, and there may be specific notes addressing this issue.
  Transaction Codes: Familiarize yourself with relevant transaction codes (e.g., FB50 for general ledger postings, FBL3N for account line items) to help in troubleshooting.
  Consult with Finance Team: Collaborate with your finance or accounting team to ensure that all financial data is accurate and that the accounting principles are being followed correctly.
  Testing: After making corrections, run tests to ensure that the error does not reoccur and that stockholders' equity is calculated correctly.
  
  If the issue persists after following these steps, it may be beneficial to consult with an SAP expert or your organization's SAP support team for further assistance.