How To Fix UCF6665 - Extraord. valuation allowance no longer possible after transfer

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 665

• Message text: Extraord. valuation allowance no longer possible after transfer

What causes this issue?

It is not possible to perform the extraordinary valuation allowance
entered on the acquiring investor of transfer number &V1& of investee
unit &V2& (amortization &V3&, writeup &V4&) because the relevant
<DS:GLOS.3526B7A1AFAB52B9E10000009B38F974>goodwill</> in the current
consolidation period has already undergone valuation allowance prior to
the transfer. If goodwill is carried in the local currency, the entries
for the extraordinary valuation allowance are initialized when
consolidation of investments is performed in an update run.

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?

If the incurrence of goodwill predates the current consolidation period,
you need to adjust the sequence of activities so that the transfer
occurs before the goodwill amortization. If this is not the case, then
you may have to enter the extraordinary valuation allowance for the
divesting investor of the transfer or make additional goodwill entries
manually to achieve the desired amortization behavior.

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 UCF6665 - Extraord. valuation allowance no longer possible after transfer ?

  The SAP error message UCF6665, which states "Extraord. valuation allowance no longer possible after transfer," typically occurs in the context of financial accounting and asset management within SAP. This error is related to the handling of extraordinary valuation allowances for assets, particularly after a transfer of assets has taken place.
  Cause:
  The error arises when there is an attempt to create or adjust an extraordinary valuation allowance for an asset that has already been transferred. In SAP, once an asset is transferred (for example, from one cost center to another or from one company code to another), certain accounting treatments, including extraordinary valuation allowances, may no longer be applicable. This is because the asset's accounting context has changed, and the system restricts further adjustments to ensure data integrity and compliance with accounting principles.
  Solution:
  To resolve this error, consider the following steps:
  
  
  Check Asset Transfer Details: Review the details of the asset transfer to ensure that it was completed correctly. Verify that the asset is in the correct status and that all necessary postings have been made.
  
  
  Review Valuation Allowance: If you need to adjust the extraordinary valuation allowance, you may need to do so before the asset is transferred. If the transfer has already occurred, you may need to create a new valuation allowance in the new context of the asset.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidelines on handling extraordinary valuation allowances and asset transfers. This can provide insights into the correct procedures and any limitations.
  
  
  Use Alternative Methods: If the extraordinary valuation allowance is no longer possible, consider using alternative methods for asset valuation or adjustments that comply with your organization's accounting policies.
  
  
  Contact SAP Support: If the issue persists and you cannot find a resolution, consider reaching out to SAP support or your internal SAP team for further assistance. They may provide insights specific to your system configuration and business processes.
  
  
  Related Information:
  
  Asset Accounting (FI-AA): Understanding the principles of asset accounting in SAP can help in managing assets and their valuations effectively.
  Configuration Settings: Review the configuration settings related to asset transfers and extraordinary valuation allowances in your SAP system.
  User Roles and Authorizations: Ensure that the user attempting to make the changes has the necessary authorizations to perform asset adjustments.
  
  By following these steps, you should be able to address the UCF6665 error and manage your asset valuations appropriately within SAP.