How To Fix UCF6856 - Goodwill carried in local currency: Treatment not allowed

SAP Error Message - Details

• Message type: E = Error

• Message class: UCF6 - Messages for Consolidation of Investments

• Message number: 856

• Message text: Goodwill carried in local currency: Treatment not allowed

What causes this issue?

Goodwill carried in local currency cannot be directly eliminated or
directly written off.

System Response

The data record cannot be processed.

How to fix this error?

Adjust the treatment of goodwill.

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 UCF6856 - Goodwill carried in local currency: Treatment not allowed ?

  The SAP error message UCF6856, which states "Goodwill carried in local currency: Treatment not allowed," typically arises in the context of financial accounting and consolidation processes within SAP. This error is related to the handling of goodwill in local currency during consolidation or reporting processes.
  Cause:
  
  Goodwill Treatment: The error indicates that there is an issue with how goodwill is being treated in the local currency. This can occur if the system is trying to process goodwill in a way that is not allowed by the configuration or the accounting principles being applied.
  Currency Settings: The local currency settings for the company code or the group may not be properly configured, leading to inconsistencies in how goodwill is recorded or reported.
  Consolidation Settings: If you are using SAP for consolidation, the settings for goodwill treatment in the consolidation module may not align with the local currency settings.
  
  Solution:
  
  Check Configuration: Review the configuration settings for goodwill in the SAP system. Ensure that the treatment of goodwill is correctly set up according to the accounting standards applicable to your organization (e.g., IFRS, GAAP).
  Currency Settings: Verify the currency settings for the company code and ensure that the local currency is correctly defined. Check if the currency type for goodwill is set up correctly in the relevant configuration.
  Consolidation Settings: If applicable, check the consolidation settings in the SAP system. Ensure that the treatment of goodwill in the consolidation process is correctly configured and that it aligns with the local currency settings.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling goodwill in local currency. This may provide insights into any additional settings or configurations that need to be adjusted.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error message. SAP frequently releases updates and patches that may resolve known issues.
  
  Related Information:
  
  SAP Modules: This error is often encountered in modules related to Financial Accounting (FI) and Consolidation (EC-CS).
  Goodwill Accounting: Goodwill accounting can be complex, especially in multinational organizations where multiple currencies are involved. Understanding the accounting principles and regulations governing goodwill is essential.
  Support: If the issue persists after checking the configurations, consider reaching out to SAP support or consulting with an SAP expert who specializes in financial accounting and consolidation.
  
  By addressing the configuration and settings related to goodwill and local currency, you should be able to resolve the UCF6856 error message.