How To Fix G0688 - Reclassification activity triggers special logic for goodwill separation

G0688 - Overview

• Message type: E = Error

• Message class: G0 - Messages for SAP Consolidation

• Message number: 688

• Message text: Reclassification activity triggers special logic for goodwill separation

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>Reclassification of Treasury Stock</>.

System Response

When <ls>Separation of Goodwill from Investment</> is active, the
<ls>Reclassification of Treasury Stock</> activity identifies a goodwill
entry as goodwill separated from the investment structure. 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 goodwill
separated from the investment.
In reclassifications, the system does not shift the goodwill separated
from the investment to the buying investor.

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 G0688 - Reclassification activity triggers special logic for goodwill separation ?

  The SAP error message G0688, which states "Reclassification activity triggers special logic for goodwill separation," typically occurs during the reclassification of assets in the Asset Accounting (FI-AA) module. This error is related to the handling of goodwill and the specific accounting rules that apply to it.
  
  Cause:
  The error is triggered when a reclassification activity is attempted on an asset that has goodwill associated with it. In SAP, goodwill is treated differently from other types of assets due to its nature and the accounting standards that govern it. The system has special logic to ensure that goodwill is separated correctly during reclassification activities, and if this logic is not satisfied, the error message is generated.
  
  Solution:
  To resolve this error, consider the following steps:
  
  
  Check Asset Configuration: Ensure that the asset in question is configured correctly in the system. Verify that the asset class and the associated settings for goodwill are properly defined.
  
  
  Review Reclassification Logic: