Diagnosis
You have not specified the item for net income prior to firstconsolidation under Appropriation of Retained Earnings -> Net Income inCustomizing for consolidation of investments.
This item is part of appropriation of retained earnings. These itemsmust be either in the balance sheet or in the income statement,depending on where appropriations of retained earnings are stated (seethe settings in the consolidation area).

Procedure
Add the missing assignments in Customizing for consolidation ofinvestments.