How To Fix UCM0120 - Cannot activate the function "goodwill in local currency"

UCM0120 - Overview

• Message type: E = Error

• Message class: UCM0 - Messages for Data Basis, Cons Area, ...

• Message number: 120

• Message text: Cannot activate the function "goodwill in local currency"

What causes this issue?

You want to use the function <ZK>goodwill in local currency</> in
<DS:GLOS.D5692F24DA2CD511BCBF0800060D9C68>consolidation area</> &V1&.
However, this is only possible when you also use <ZK>consolidation of
investments</>.

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?

Activate <ZK>consolidation of investments</>, or deactivate the function
<ZK>goodwill in local currency</>.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

UCM0120 - Details

• The SAP error message UCM0120, which states "Cannot activate the function 'goodwill in local currency'," typically occurs in the context of the Universal Journal (ACDOCA) and the activation of certain functionalities related to goodwill accounting in SAP S/4HANA.
  
  Cause:
  The error can arise due to several reasons, including:
  
  
  Configuration Issues: The necessary configuration for goodwill accounting may not be properly set up in the system.
  Missing Authorizations: The user may not have the required authorizations to activate this function.
  System Settings: The system settings may not support the activation of goodwill in local currency, possibly due to the current configuration of the ledger or currency settings.
  Incompatibility with Existing Settings: The current settings for the company code or controlling area may not be compatible with the activation of this function.
  
  
  Solution:
  To resolve the UCM0120 error, you can follow these steps:
  
  
  Check Configuration:
  
  Go to the configuration settings for goodwill accounting in the SAP system. Ensure that all necessary parameters