How To Fix G00422 - Exch.rate indicator &1 is invalid for currency translation of goodwill

SAP Error Message - Details

• Message type: E = Error

• Message class: G00 - SAP Consolidation

• Message number: 422

• Message text: Exch.rate indicator &1 is invalid for currency translation of goodwill

What causes this issue?

Exchange rate indicator &V1& was specified in the global settings for
C/I for currency translation of goodwill in the balance sheet or
income statement. However, this exchange rate indicator is invalid.

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?

Define exchange rate indicator &V1& in the Customizing of currency
translation or define a valid exchange rate indicator in the global
settings for C/I.

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 G00422 - Exch.rate indicator &1 is invalid for currency translation of goodwill ?

  The SAP error message G00422 indicates that there is an issue with the exchange rate indicator used for currency translation of goodwill. This error typically arises in the context of financial reporting and currency translation processes within SAP, particularly when dealing with foreign currency transactions and consolidations.
  Cause:
  
  Invalid Exchange Rate Indicator: The exchange rate indicator specified in the transaction or configuration is not valid or does not exist in the system.
  Configuration Issues: The exchange rate type may not be properly configured in the system, or it may not be assigned to the relevant currencies.
  Missing Exchange Rates: There may be missing exchange rates for the specified currency pair for the relevant period.
  Incorrect Settings in the Company Code: The company code settings may not be aligned with the required exchange rate indicators for goodwill calculations.
  
  Solution:
  
  
  Check Exchange Rate Indicator:
  
  Verify the exchange rate indicator being used in the transaction. Ensure that it is correctly defined and valid for the currencies involved.
  You can check this in the SAP system by navigating to the relevant configuration settings (Transaction Code: OB08 for maintaining exchange rates).
  
  
  
  Maintain Exchange Rates:
  
  Ensure that the necessary exchange rates are maintained for the relevant currency pair and for the required periods. This can also be done using Transaction Code: OB08.
  
  
  
  Review Configuration:
  
  Check the configuration settings for currency translation in the SAP system. Ensure that the exchange rate type is correctly assigned to the relevant currencies and that it is set up for goodwill calculations.
  
  
  
  Company Code Settings:
  
  Review the settings for the company code to ensure that they are correctly configured to use the appropriate exchange rate indicators for goodwill.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or help resources for specific guidance on handling exchange rate indicators and goodwill calculations.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error is resolved.
  
  
  
  Related Information:
  
  Transaction Codes: 
  
  OB08: Maintain Exchange Rates
  OBA1: Define Exchange Rate Types
  OBA3: Define Translation Ratios
  
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  User Roles: Ensure that the user has the necessary authorizations to make changes to exchange rates and configuration settings.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a functional consultant who specializes in financial accounting and controlling (FI/CO) within SAP.