How To Fix G0689 - Goodwill treatment of acquisitions: Specify an activity

SAP Error Message - Details

• Message type: E = Error

• Message class: G0 - Messages for SAP Consolidation

• Message number: 689

• Message text: Goodwill treatment of acquisitions: Specify an activity

What causes this issue?

You have specified a goodwill treatment (that is, a valuation allowance
procedure for positive or negative goodwill) without an activity.

System Response

The Customizing settings for the goodwill treatment for acquisitions are
inconsistent and cannot be saved.

How to fix this error?

You can determine which goodwill treatment should be used to post
goodwill or negative goodwill incurred in an acquisition (except in a
first consolidation):
Direct acquisition (entry "Step Acquisition"): step acquisition,
increase in capitalization, reduction in capitalization
Increase in indirect investment
You must specify the "Step Acquisition" activity or the "Increase in
Indirect Investment" activity.

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 G0689 - Goodwill treatment of acquisitions: Specify an activity ?

  The SAP error message G0689, which states "Goodwill treatment of acquisitions: Specify an activity," typically occurs in the context of financial accounting and consolidation processes, particularly when dealing with goodwill arising from business combinations or acquisitions.
  Cause:
  This error usually arises when the system requires a specific activity to be defined for the treatment of goodwill related to an acquisition. The activity could refer to the type of transaction or the accounting treatment that needs to be applied to the goodwill. If this activity is not specified, the system cannot proceed with the necessary calculations or postings.
  Solution:
  To resolve the G0689 error, you can follow these steps:
  
  
  Check Configuration Settings:
  
  Navigate to the configuration settings for goodwill treatment in your SAP system. This is typically found in the Financial Accounting (FI) or Controlling (CO) modules.
  Ensure that the necessary activities for goodwill treatment are defined and configured correctly.
  
  
  
  Specify the Activity:
  
  When processing the acquisition or business combination, ensure that you specify the required activity related to goodwill treatment. This may involve selecting the appropriate transaction type or entering the necessary details in the relevant fields.
  
  
  
  Review Documentation:
  
  Consult the SAP documentation or help files related to goodwill treatment and acquisitions. This can provide insights into the required settings and activities.
  
  
  
  Consult with Your SAP Team:
  
  If you are unsure about the correct activity to specify, consult with your SAP functional team or a financial consultant who specializes in SAP. They can provide guidance based on your organization's specific configuration and requirements.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs and that the goodwill is being treated correctly.
  
  
  
  Related Information:
  
  Goodwill Accounting: Goodwill arises when a company acquires another company for more than the fair value of its net identifiable assets. Proper accounting for goodwill is essential for accurate financial reporting.
  SAP Modules: This error is primarily related to the Financial Accounting (FI) and Controlling (CO) modules in SAP. Understanding how these modules interact can help in troubleshooting.
  Business Combinations: Familiarize yourself with the accounting standards related to business combinations (e.g., IFRS 3 or ASC 805) as they provide guidelines on how to account for goodwill.
  
  By following these steps and understanding the context of the error, you should be able to resolve the G0689 error effectively.