How To Fix UCF6785 - Goodwill no. &1: Goodwill treatment "R/E appropriation" is not permitted

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 785

• Message text: Goodwill no. &1: Goodwill treatment "R/E appropriation" is not permitted

What causes this issue?

You have specified <LS>Appropriation of Retained Earnings</> as the
goodwill treatment for the goodwill with activity number &V1&. You can
only select <LS>Appropriation of Retained Earnings</> as the goodwill
treatment, however, if you have activated the <LS>Partial Divestiture as
Equity Transaction</> function in the system utilization for
consolidation of investments. This function is not currently active.

System Response

The goodwill with the activity number &V1& contains errors and cannot be
saved.

How to fix this error?

Activate the <LS>Partial Divestiture as Equity Transaction</> function
or specify a different goodwill treatment.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message UCF6785 - Goodwill no. &1: Goodwill treatment "R/E appropriation" is not permitted ?

  The SAP error message UCF6785 indicates that there is an issue with the treatment of goodwill in the context of a specific transaction or configuration. The message states that the goodwill treatment "R/E appropriation" (Retained Earnings appropriation) is not permitted for the specified goodwill number.
  Cause:
  
  Configuration Issue: The error often arises from incorrect configuration settings in the SAP system related to goodwill treatment. The system may not be set up to allow for the specific treatment of goodwill as "R/E appropriation."
  Goodwill Type: The type of goodwill being processed may not support the "R/E appropriation" treatment. Different types of goodwill (e.g., acquired goodwill, internally generated goodwill) may have different accounting treatments.
  Transaction Type: The transaction being executed may not be compatible with the "R/E appropriation" treatment for goodwill.
  
  Solution:
  
  Check Configuration: Review the configuration settings in the SAP system related to goodwill treatment. Ensure that the settings allow for the "R/E appropriation" treatment for the specific goodwill number.
  
  Navigate to the relevant configuration path in SAP (usually under Financial Accounting or Asset Accounting) and verify the settings for goodwill.
  
  
  Review Goodwill Type: Confirm that the goodwill type being used is appropriate for the "R/E appropriation" treatment. If necessary, consult with your finance team or SAP consultant to determine the correct type.
  Transaction Review: Ensure that the transaction you are trying to execute is appropriate for the goodwill treatment you are attempting to apply. If the transaction is not compatible, consider using a different transaction or approach.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on goodwill treatment and the error message. This may provide additional insights into the configuration or transaction requirements.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error message or provide updates or patches that could resolve the issue.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have found.
  Testing: After making any changes to configuration or transaction types, conduct thorough testing to ensure that the issue is resolved and that the goodwill treatment is applied 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.