How To Fix G0687 - Liquidation activity triggers special logic for full goodwill

SAP Error Message - Details

• Message type: E = Error

• Message class: G0 - Messages for SAP Consolidation

• Message number: 687

• Message text: Liquidation activity triggers special logic for full goodwill

What causes this issue?

You have activated the <ls>Separation of Goodwill from Investment</>
function in the settings for system utilization for consolidation of
investments.
You have entered the current goodwill entry for consolidation of
investments activity <ls>Liquidation</>.

System Response

When <ls>Separation of Goodwill from Investment</> is active, the
<ls>Liquidation</> activity identifies a goodwill entry as full
goodwill. In this case, the system uses the following special logic in
consolidation of investments:
The system does not post minority interest on effects from valuation
allowances or currency translation.
In partial divestitures, the system does not reduce the full goodwill.

How to fix this error?

Check if you want to use this special logic. If this is not the case,
enter the goodwill entry for an activity other than the following ones:
Liquidation
Reclassification of Treasury Stock

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message G0687 - Liquidation activity triggers special logic for full goodwill ?

  The SAP error message G0687, which states "Liquidation activity triggers special logic for full goodwill," typically occurs in the context of financial consolidation and reporting, particularly when dealing with business combinations and goodwill calculations in SAP S/4HANA or SAP Business Suite.
  Cause:
  This error is generally triggered when there is an attempt to perform a liquidation activity (such as a sale or dissolution of a subsidiary) that involves full goodwill accounting. Full goodwill refers to the method of accounting for goodwill that includes the fair value of the acquired entity's identifiable net assets and any goodwill attributable to non-controlling interests.
  The error can occur due to several reasons:
  
  Incorrect Configuration: The system may not be properly configured to handle full goodwill in the context of liquidation activities.
  Missing Data: Required data for the liquidation process, such as fair value adjustments or goodwill calculations, may be missing or incorrectly entered.
  Incompatible Settings: The settings for the consolidation or liquidation process may not align with the full goodwill accounting method.
  
  Solution:
  To resolve the G0687 error, consider the following steps:
  
  
  Check Configuration:
  
  Ensure that the configuration for business combinations and goodwill accounting is set up correctly in the system. This includes checking the settings for full goodwill in the consolidation settings.
  
  
  
  Review Data:
  
  Verify that all necessary data for the liquidation activity is complete and accurate. This includes checking the fair value of assets and liabilities, as well as any adjustments related to goodwill.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or notes related to the G0687 error for specific guidance on how to handle this situation. SAP Notes may provide additional insights or patches that can resolve the issue.
  
  
  
  Test in a Sandbox Environment:
  
  If possible, replicate the scenario in a test or sandbox environment to identify the specific conditions that trigger the error. This can help in troubleshooting without affecting production data.
  
  
  
  Engage SAP Support:
  
  If the issue persists, consider reaching out to SAP support for assistance. They can provide expert guidance and may have access to additional resources or patches.
  
  
  
  Related Information:
  
  Goodwill Accounting: Understanding the principles of goodwill accounting, including full goodwill and partial goodwill methods, is essential for resolving issues related to this error.
  Liquidation Activities: Familiarize yourself with the processes and implications of liquidation activities in SAP, as they can have significant impacts on financial reporting.
  SAP Notes and Knowledge Base: Regularly check SAP Notes and the SAP Knowledge Base for updates or known issues related to the G0687 error.
  
  By following these steps and understanding the context of the error, you should be able to address the G0687 message effectively.