How To Fix G00375 - Life of goodwill amortization/reduction not specified in global settings

SAP Error Message - Details

• Message type: E = Error

• Message class: G00 - SAP Consolidation

• Message number: 375

• Message text: Life of goodwill amortization/reduction not specified in global settings

What causes this issue?

The global C/I settings are inconsistently defined in regards to the
treatment of (negative)
<DS:GLOS.3526B7A1AFAB52B9E10000009B38F974>goodwill</>. This might be
caused by one of the following:

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

The amortization of (negative) goodwill was selected, but there is no
entry for the life of the amortization.
The periodic reduction of (negative) goodwill was selected, but there
is no entry for the length of this process.

System Response

Error message

How to fix this error?

Check the entries for the life (length) of the amortization and
periodic reduction of the (negative) goodwill in the global settings
for C/I (Customizing). Particularly, also look at the goodwill-related
entries in the C/I system utilization (in C/I Customizing).

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message G00375 - Life of goodwill amortization/reduction not specified in global settings ?

  The SAP error message G00375 indicates that the system requires a specification for the life of goodwill amortization or reduction in the global settings, but this has not been defined. This error typically arises in the context of financial accounting and asset management, particularly when dealing with goodwill and intangible assets.
  Cause:
  
  Missing Configuration: The primary cause of this error is that the global settings for the amortization or reduction period of goodwill have not been configured in the system.
  Incorrect Asset Class Settings: The asset class associated with the goodwill may not have the necessary settings for amortization defined.
  Transaction Context: The error may occur during specific transactions that involve the posting or adjustment of goodwill, such as acquisitions or mergers.
  
  Solution:
  To resolve the G00375 error, you can follow these steps:
  
  
  Access Global Settings:
  
  Navigate to the configuration settings in SAP. This is typically done through the transaction code SPRO (SAP Project Reference Object).
  Go to Financial Accounting (New) > Asset Accounting > Integration > Define Global Parameters for Asset Accounting.
  
  
  
  Define Goodwill Amortization:
  
  In the global parameters, look for the section related to goodwill or intangible assets.
  Specify the life of goodwill amortization or reduction. This is usually defined in years and should reflect the company's accounting policies.
  
  
  
  Check Asset Class Settings:
  
  Ensure that the asset class used for goodwill has the correct settings for amortization.
  Go to Financial Accounting (New) > Asset Accounting > Master Data > Asset Class and check the settings for the relevant asset class.
  
  
  
  Review Transaction:
  
  If the error occurs during a specific transaction, review the details of that transaction to ensure that all necessary information is provided and that it aligns with the defined settings.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Related Information:
  
  Documentation: Refer to SAP documentation or help files for detailed guidance on configuring asset accounting and goodwill settings.
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates related to this error message.
  Consulting with Finance Team: It may be beneficial to consult with your finance or accounting team to ensure that the amortization period aligns with the company's financial policies and regulatory requirements.
  
  By following these steps, you should be able to resolve the G00375 error and ensure that your SAP system is correctly configured for goodwill amortization.