How To Fix G00424 - Method &1 uses goodwill in local currency or per investee unit

SAP Error Message - Details

• Message type: E = Error

• Message class: G00 - SAP Consolidation

• Message number: 424

• Message text: Method &1 uses goodwill in local currency or per investee unit

What causes this issue?

For C/I method &V1&, at least one of the following options is set:
'carry goodwill in local currency' and 'post goodwill to investee unit'.
However, these options are only supported for methods that amortize
goodwill and negative goodwill ordinarily or extraordinarily.

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?

Correct the definition of method &V1& in the Customizing of 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 G00424 - Method &1 uses goodwill in local currency or per investee unit ?

  The SAP error message G00424 indicates that there is an issue related to the handling of goodwill in the context of investments. This error typically arises when there is a discrepancy in how goodwill is being processed in local currency or per investee unit in the system.
  Cause:
  
  Goodwill Calculation: The error often occurs when the system is trying to calculate or post goodwill for an investment, but the method being used does not align with the expected currency or unit settings.
  Configuration Issues: There may be configuration settings in the SAP system that are not set up correctly for handling goodwill, particularly in relation to local currency or the specific investee unit.
  Data Inconsistencies: There could be inconsistencies in the data entered for the investment, such as incorrect currency settings or missing information related to the investee.
  
  Solution:
  
  Check Configuration: Review the configuration settings for goodwill in the SAP system. Ensure that the settings for local currency and investee units are correctly defined.
  Review Investment Data: Check the investment data for any inconsistencies or missing information. Ensure that all necessary fields are filled out correctly and that the currency settings are appropriate.
  Use Correct Method: Ensure that the method being used for calculating goodwill is appropriate for the type of investment and complies with the local currency requirements.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling goodwill and related settings.
  SAP Notes: Check for any relevant SAP Notes that may address this specific error message or provide updates or patches that could resolve the issue.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes that may help in troubleshooting, such as OADB (for asset accounting) or OAAQ (for managing goodwill).
  SAP Community: Engage with the SAP Community or forums where other users may have encountered similar issues and can provide insights or solutions.
  Support: If the issue persists, consider reaching out to SAP support for assistance, providing them with detailed information about the error and the context in which it occurs.
  
  By following these steps, you should be able to identify the cause of the G00424 error and implement a solution to resolve it.