How To Fix G00420 - Exch.rate ind. "balance sheet" is missing for currency trl. of goodwill

SAP Error Message - Details

• Message type: E = Error

• Message class: G00 - SAP Consolidation

• Message number: 420

• Message text: Exch.rate ind. "balance sheet" is missing for currency trl. of goodwill

What causes this issue?

The function "goodwill in local currency" was activated in the system
settings for the utilization of C/I. However, no exchange rate indicator
was specifed in the global settings for C/I for currency translation of
goodwill into local currency in the balance sheet.

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?

Maintain the exchange rate indicator "balance sheet" in the global
settings for C/I for currency translation of goodwill.

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 G00420 - Exch.rate ind. "balance sheet" is missing for currency trl. of goodwill ?

  The SAP error message G00420 indicates that there is a missing exchange rate indicator for the balance sheet currency related to the goodwill account. This typically occurs in the context of financial accounting and can affect the proper valuation of goodwill in different currencies.
  Cause:
  
  Missing Exchange Rate Indicator: The exchange rate indicator for the balance sheet currency (in this case, the currency of goodwill) is not defined in the system.
  Configuration Issues: The exchange rate type may not be set up correctly in the system, or the necessary exchange rates may not have been maintained.
  Currency Settings: The currency settings for the company code or the specific account may not be configured properly.
  
  Solution:
  
  
  Check Exchange Rate Configuration:
  
  Go to the transaction code OB08 to maintain exchange rates.
  Ensure that the exchange rate type used for balance sheet valuations is defined and that the necessary exchange rates are maintained for the relevant currencies.
  
  
  
  Define Exchange Rate Indicator:
  
  Use transaction code OB22 to define the exchange rate indicator for the balance sheet.
  Make sure that the exchange rate indicator for the currency of goodwill is set up correctly.
  
  
  
  Review Company Code Settings:
  
  Check the company code settings in transaction code OBY6 to ensure that the currency settings are correct.
  Verify that the currency settings for the goodwill account are properly configured.
  
  
  
  Check Goodwill Account Configuration:
  
  Review the configuration of the goodwill account in the chart of accounts to ensure that it is set up to handle the required currencies.
  
  
  
  Consult Documentation: If the issue persists, refer to SAP documentation or consult with your SAP support team for further assistance.
  
  
  Related Information:
  
  Transaction Codes:
  
  OB08: Maintain Exchange Rates
  OB22: Define Exchange Rate Indicators
  OBY6: Company Code Global Parameters
  
  
  Exchange Rate Types: Familiarize yourself with the different exchange rate types (e.g., M for average rate, G for historical rate) and their implications for financial reporting.
  Goodwill Accounting: Understand how goodwill is accounted for in your financial statements, especially in relation to foreign currency translations.
  
  By following these steps, you should be able to resolve the G00420 error and ensure that the exchange rate indicator for the balance sheet currency of goodwill is properly configured.