How To Fix UCM0227 - Separation of Goodwill from Investment required (consolidation area &2)

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 227

• Message text: Separation of Goodwill from Investment required (consolidation area &2)

What causes this issue?

You have activated the <LS>Separation of Goodwill from Investment</>
function in the settings for the consolidation area &V2&.
This function requires the data stream for goodwill to be adjusted.

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?

Select the "Generated" indicator on the "Data Streams" tab page for the
&V1& data basis for the goodwill data stream.
Select the "Separation of Goodwill from Investment" function on the
"Data Stream Fields" tab page in the additional fields for the goodwill
data stream.
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 UCM0227 - Separation of Goodwill from Investment required (consolidation area &2) ?

  The SAP error message UCM0227, "Separation of Goodwill from Investment required (consolidation area &2)," typically occurs in the context of financial consolidation processes within SAP. This error indicates that there is a need to separate goodwill from the investment amount in the consolidation area specified. Here’s a breakdown of the cause, potential solutions, and related information:
  Cause:
  
  
  Goodwill Calculation: The error arises when the system detects that goodwill has not been properly separated from the investment amount in the consolidation process. This is often required for compliance with accounting standards (e.g., IFRS or GAAP) that mandate the separate reporting of goodwill.
  
  
  Consolidation Settings: The settings in the consolidation area may not be configured correctly to handle the separation of goodwill from investments.
  
  
  Data Entry Issues: There may be incorrect or incomplete data entries in the investment or goodwill accounts.
  
  
  Solution:
  
  
  Check Consolidation Settings:
  
  Navigate to the consolidation area settings in SAP and ensure that the configuration allows for the separation of goodwill from investments.
  Verify that the relevant parameters for goodwill calculation and reporting are correctly set.
  
  
  
  Review Investment Data:
  
  Examine the investment data for the entity in question. Ensure that the goodwill amount is recorded separately from the investment amount.
  If necessary, adjust the entries in the relevant accounts to reflect the correct separation.
  
  
  
  Adjust Goodwill Calculation:
  
  If the goodwill was not calculated or recorded correctly, you may need to recalculate it based on the acquisition method used and ensure it is recorded in the appropriate accounts.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on handling goodwill in your version of SAP. This may include configuration guides or best practices for financial consolidation.
  
  
  
  Run Consistency Checks:
  
  Use SAP tools to run consistency checks on your consolidation data to identify any discrepancies that may be causing the error.
  
  
  
  Seek Support:
  
  If the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert who specializes in financial consolidation.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on handling goodwill in consolidation.
  Training and Documentation: Ensure that users involved in the consolidation process are trained on the importance of separating goodwill and the correct procedures to follow.
  Regulatory Compliance: Be aware of the accounting standards applicable to your organization, as they may dictate specific requirements for goodwill and investment reporting.
  
  By addressing the configuration and data issues related to goodwill and investments, you should be able to resolve the UCM0227 error and proceed with your consolidation activities.