How To Fix UCM0205 - Goodwill in local currency is required (consolidation area &2)

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 205

• Message text: Goodwill in local currency is required (consolidation area &2)

What causes this issue?

If you want to use the consolidation of investments function
<ZK>goodwill in local currency</> in a
<DS:GLOS.D5692F24DA2CD511BCBF0800060D9C68>consolidation area</> of
<DS:GLOS.3C14A7065A82D511B1250008C784EFB1>data basis</> &V1&, then the
data streams <ZK>goodwill</> and <ZK>investments</> must be extended.
Consolidation of investments is activated at present in consolidation
area &V2&.

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?

In the maintnenance of data basis &V1&, select the data streams
<ZK>Investments</> and <ZK>Goodwill</> for generation.
Include the optional characteristic <ZK>Carry Goodwill in Local Currency
</> in the data stream <ZK>Goodwill</> under <ZK>Additional Financial
Data</>.
Save the data basis.

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 UCM0205 - Goodwill in local currency is required (consolidation area &2) ?

  The SAP error message UCM0205, which states "Goodwill in local currency is required (consolidation area &2)," typically occurs in the context of financial consolidation processes within SAP. This error indicates that the system requires the goodwill amount to be specified in the local currency for a particular consolidation area.
  Cause:
  
  Missing Goodwill Data: The primary cause of this error is that the goodwill amount has not been entered or is missing for the specified consolidation area.
  Configuration Issues: There may be issues with the configuration of the consolidation area, such as incorrect settings or missing parameters that are required for the calculation of goodwill.
  Data Entry Errors: There could be errors in data entry where the goodwill amount was not properly recorded or was entered in an incorrect format.
  
  Solution:
  
  
  Enter Goodwill Amount: 
  
  Navigate to the relevant consolidation area in the SAP system.
  Ensure that the goodwill amount is entered in the local currency. This can typically be done in the consolidation data entry screens or through the relevant financial transaction codes.
  
  
  
  Check Configuration:
  
  Review the configuration settings for the consolidation area to ensure that all required fields, including goodwill, are properly set up.
  Ensure that the local currency is correctly defined for the consolidation area.
  
  
  
  Data Validation:
  
  Validate the data entries for the consolidation area to ensure that all required financial figures, including goodwill, are present and correctly formatted.
  Check for any missing or incomplete data that may be causing the error.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on handling goodwill in the context of your version of SAP and the specific consolidation module you are using.
  
  
  
  Contact Support:
  
  If the issue persists after checking the above points, consider reaching out to your SAP support team or consulting with an SAP expert who can provide further assistance.
  
  
  
  Related Information:
  
  Consolidation Areas: These are specific segments within the SAP system that are used for financial consolidation purposes. Each area may have different requirements for data entry and reporting.
  Goodwill: In financial terms, goodwill represents the excess amount paid for an acquired company over its fair market value. It is an intangible asset that must be recorded accurately for financial reporting.
  SAP Modules: This error is typically encountered in SAP modules related to financial accounting (FI) and consolidation (EC-CS or S/4HANA Finance).
  
  By addressing the missing goodwill data and ensuring proper configuration, you should be able to resolve the UCM0205 error in SAP.