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

SAP Error Message - Details

• 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.

Smart SAP Assistant

• What is the cause and solution for SAP error message UCM0120 - Cannot activate the function "goodwill in local currency" ?

  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 are correctly set.
  Verify that the "goodwill in local currency" function is supported in your current system version and configuration.
  
  
  
  Review Authorizations:
  
  Ensure that the user attempting to activate the function has the necessary authorizations. You may need to consult with your SAP security team to verify and adjust user roles if needed.
  
  
  
  System Settings:
  
  Check the settings for the company code and controlling area. Ensure that they are configured to allow for goodwill accounting in local currency.
  Review the currency settings in the system to ensure they align with the requirements for activating this function.
  
  
  
  Consult Documentation:
  
  Refer to the SAP Help Portal or relevant SAP Notes for specific guidance on activating goodwill in local currency. There may be specific prerequisites or steps outlined in the documentation.
  
  
  
  SAP Support:
  
  If the issue persists after checking the above points, consider reaching out to SAP Support for further assistance. They can provide insights based on the specific configuration and version of your SAP system.
  
  
  
  Related Information:
  
  SAP Notes: Look for SAP Notes related to UCM0120 or goodwill accounting in local currency. These notes often contain fixes, workarounds, or additional configuration steps.
  SAP Community: Engage with the SAP Community forums where other users may have encountered similar issues and can share their solutions.
  Training and Documentation: Review any training materials or documentation related to financial accounting and goodwill in your SAP system to ensure compliance with best practices.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to activate the goodwill in local currency function successfully.