How To Fix G0895 - &1: Discontinued operations should be before divestiture accounting

SAP Error Message - Details

• Message type: E = Error

• Message class: G0 - Messages for SAP Consolidation

• Message number: 895

• Message text: &1: Discontinued operations should be before divestiture accounting

What causes this issue?

The year and period of <LS>discontinued operations</> must be prior to
the year and period of the <LS>final divestiture</>.

System Response

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

How to fix this error?

Specify a valid year and period for the discontinuation of operations.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message G0895 - &1: Discontinued operations should be before divestiture accounting ?

  The SAP error message G0895 indicates that there is an issue with the sequence of accounting entries related to discontinued operations and divestiture accounting. Specifically, it suggests that the entries for discontinued operations must be recorded before the entries for divestiture accounting. This is important for ensuring that financial statements accurately reflect the financial position and performance of the company, especially when dealing with segments that are no longer part of the business.
  Cause:
  The error typically arises in the following scenarios:
  
  Incorrect Sequence of Entries: The accounting entries for discontinued operations were recorded after the divestiture accounting entries.
  Configuration Issues: There may be configuration settings in the SAP system that are not aligned with the accounting principles or the company's policies regarding discontinued operations and divestitures.
  Data Entry Errors: Manual data entry errors could lead to the incorrect posting sequence.
  
  Solution:
  To resolve the G0895 error, you can take the following steps:
  
  
  Review Posting Sequence: Ensure that the accounting entries for discontinued operations are posted before the divestiture entries. You may need to reverse the divestiture entries and re-enter them after the discontinued operations entries.
  
  
  Check Configuration Settings: Verify the configuration settings in the SAP system related to discontinued operations and divestiture accounting. Ensure that they are set up correctly according to the applicable accounting standards (e.g., IFRS, GAAP).
  
  
  Consult Documentation: Refer to SAP documentation or your organization's accounting policies to understand the correct procedures for handling discontinued operations and divestitures.
  
  
  Seek Assistance: If you are unable to resolve the issue, consider reaching out to your SAP support team or a financial consultant who specializes in SAP to assist with the configuration or data entry.
  
  
  Testing: After making the necessary adjustments, perform a test run to ensure that the entries are processed correctly without triggering the error.
  
  
  Related Information:
  
  Discontinued Operations: These are components of an entity that have been disposed of or are classified as held for sale, and their results are reported separately in financial statements.
  Divestiture Accounting: This refers to the accounting treatment for the sale or disposal of a business unit or asset, which may involve recognizing gains or losses on the sale.
  Accounting Standards: Familiarize yourself with the relevant accounting standards (such as IFRS 5 for non-current assets held for sale and discontinued operations) that govern the treatment of discontinued operations and divestitures.
  
  By following these steps and understanding the underlying principles, you should be able to resolve the G0895 error effectively.