How To Fix G00736 - Complete reduction of goodwill is not possible; will be ignored

SAP Error Message - Details

• Message type: E = Error

• Message class: G00 - SAP Consolidation

• Message number: 736

• Message text: Complete reduction of goodwill is not possible; will be ignored

What causes this issue?

According to the global settings for consolidation of investments,
goodwill in divestitures and transfers is proportionately reduced for
the dimension and the version in this data record. Therefore, the
<ZK>Complete Reduction of Goodwill</> indicator may not be selected in
the additional financial data for investments.

System Response

The system automatically resets the indicator in the applicable data
records.

How to fix this error?

If you want to proportionately reduce goodwill in divestitures and
transfers in records with this dimension and version, deselect Complete
Reduction of Goodwill in the definition of the upload method and the
file to be uploaded.
In other cases, activate No or Complete Reduction of Goodwill in a
divestiture or transfer in the global settings for consolidation of
investments. Then repeat the upload of the additional financial data for
investments.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message G00736 - Complete reduction of goodwill is not possible; will be ignored ?

  The SAP error message G00736, which states "Complete reduction of goodwill is not possible; will be ignored," typically occurs in the context of financial accounting, particularly when dealing with goodwill in asset accounting or during the process of asset impairment.
  Cause:
  This error message usually arises when there is an attempt to fully reduce or eliminate goodwill that is not permissible under the current accounting rules or the configuration of the system. Some common causes include:
  
  
  Goodwill Accounting Rules: Goodwill is often subject to specific accounting rules that dictate how it can be impaired or reduced. If the system detects that a complete reduction is not allowed based on these rules, it will trigger this error.
  
  
  Configuration Issues: The configuration settings in the SAP system regarding asset accounting and goodwill management may not allow for a complete reduction of goodwill.
  
  
  Existing Impairments: If there are existing impairments or adjustments related to the goodwill that have not been fully processed or are in conflict with the current transaction, this error may occur.
  
  
  Transaction Type: The type of transaction being processed may not support a complete reduction of goodwill.
  
  
  Solution:
  To resolve this error, consider the following steps:
  
  
  Review Goodwill Accounting Policies: Check the accounting policies and regulations applicable to your organization regarding goodwill. Ensure that the intended reduction complies with these policies.
  
  
  Check Configuration Settings: Review the configuration settings in the SAP system related to asset accounting and goodwill. Ensure that the settings allow for the type of transaction you are attempting to perform.
  
  
  Partial Reduction: If a complete reduction is not possible, consider whether a partial reduction of goodwill is acceptable. You may need to adjust the amount you are trying to reduce.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling goodwill and related transactions.
  
  
  Seek Expert Advice: If the issue persists, it may be beneficial to consult with an SAP financial consultant or your internal finance team to ensure compliance with accounting standards and proper handling of goodwill.
  
  
  Related Information:
  
  Goodwill Impairment Testing: Familiarize yourself with the process of goodwill impairment testing, which is typically required annually or when there are indicators of impairment.
  SAP Asset Accounting (FI-AA): Understanding the functionalities and configurations of the SAP Asset Accounting module can help in troubleshooting issues related to asset management, including goodwill.
  Accounting Standards: Be aware of the relevant accounting standards (e.g., IFRS, GAAP) that govern the treatment of goodwill and impairment.
  
  By following these steps and understanding the underlying causes, you should be able to address the G00736 error effectively.