How To Fix UCFV131 - Extraordinary valuation allowance for ceding unit &1 after merger

UCFV131 - Overview

• Message type: E = Error

• Message class: UCFV - Messages for Validation

• Message number: 131

• Message text: Extraordinary valuation allowance for ceding unit &1 after merger

What causes this issue?

For consolidation unit &V1&, you have entered an extraordinary
amortization or writeup in the additional financial data for the <LS>
Assets/Liabilities</> data stream for noncurrent asset &V2&.
However, consolidation unit &V1& was already totally divested as a
ceding unit as a result of a merger.

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?

Check the additional financial data for the <LS>Assets/Liabilities</>
data stream for noncurrent asset &V2& and consolidation unit &V1&, and
set the extraordinary valuation allowance back to zero if required.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

UCFV131 - Details

• The SAP error message UCFV131, which indicates an "Extraordinary valuation allowance for ceding unit &1 after merger," typically arises in the context of insurance and financial services, particularly when dealing with reinsurance and valuation processes after a merger or acquisition.
  
  Cause:
  This error message usually occurs due to discrepancies in the valuation of ceding units after a merger. The following factors may contribute to this issue:
  
  Data Inconsistencies: Merged entities may have different valuation methods or data that do not align, leading to extraordinary valuation allowances.
  
  Configuration Issues: The system may not be properly configured to handle the new structure post-merger, resulting in incorrect calculations.
  Regulatory Compliance: Changes in regulatory requirements post-merger may necessitate adjustments in how valuation allowances are calculated.
  Missing or Incorrect Data: If the necessary data for the valuation process is missing or incorrect, it can trigger this error.
  
  
  Solution:
  To resolve the UCFV131 error, consider the following steps:
  
  Review Valuation Settings: Check the valuation settings