How To Fix G0620 - Goodwill amortization can only be recorded in closing periods

SAP Error Message - Details

• Message type: E = Error

• Message class: G0 - Messages for SAP Consolidation

• Message number: 620

• Message text: Goodwill amortization can only be recorded in closing periods

What causes this issue?

You are trying to record an activity for the
<DS:GLOS.amortization_of_goodwill>amortization of goodwill</> in period
&v1&. Group &v2& uses <DS:GLOS.consolidation_frequency>consolidation
frequency</> &v3&. However, you can only record activities for
goodwill amortization in the closing periods that are valid for this
consolidation frequency.

System Response

Processing terminated

How to fix this error?

Either change the consolidation frequency for group &v2&, or record the
activity in a different period.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message G0620 - Goodwill amortization can only be recorded in closing periods ?

  The SAP error message G0620, which states "Goodwill amortization can only be recorded in closing periods," typically occurs when there is an attempt to post goodwill amortization in a period that is not designated as a closing period. This is a common issue in financial accounting within SAP, particularly when dealing with goodwill and its amortization.
  Cause:
  
  Period Status: The error usually arises when the accounting period you are trying to post to is not marked as a closing period. In SAP, certain transactions, such as goodwill amortization, are restricted to specific periods to ensure proper financial reporting and compliance with accounting standards.
  Configuration Settings: The system configuration may restrict the posting of goodwill amortization to only certain periods, often the last period of the fiscal year or the closing periods defined in the system.
  Posting Date: The posting date of the transaction may fall outside the allowed range for goodwill amortization postings.
  
  Solution:
  
  Check Period Status: Verify the status of the accounting period you are trying to post to. You can do this by navigating to the period closing settings in SAP (Transaction Code: OB52) and ensuring that the period is open for postings.
  Use Closing Period: If the period is not a closing period, you will need to either change the posting date to a valid closing period or wait until the appropriate closing period is available for posting.
  Adjust Configuration: If necessary, consult with your SAP configuration team to review the settings related to goodwill amortization and determine if adjustments are needed to allow postings in specific periods.
  Transaction Codes: Use transaction codes like FAGLGVTR (for posting to the general ledger) or F-02 (for general postings) to ensure you are using the correct method for posting amortization.
  
  Related Information:
  
  Goodwill Amortization: Goodwill is an intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets. Amortization of goodwill is the systematic allocation of its cost over its useful life.
  Fiscal Year Settings: Ensure that your fiscal year settings are correctly configured in SAP, as this can affect the periods available for posting.
  SAP Notes: Check for any relevant SAP Notes or documentation that may provide additional insights or updates regarding this error message.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or refer to SAP documentation for further troubleshooting.