Hi Prince, there is a badi isu_umc_business_settings with method set_bc_default_parameters that returns basic settings how bp contact should be created. Maybe, those basic settings are not there on your system and you have to overwrite that badi implementation. Still you would need to do a quick debug to verify: debug UPDATE_ENTITY, put breakpoint on BCONTACT_CREATE. This is what I can suggest.
Yevgen