How To Fix G00738 - Complete reduction of goodwill is not suitable for activity &1

SAP Error Message - Details

• Message type: E = Error

• Message class: G00 - SAP Consolidation

• Message number: 738

• Message text: Complete reduction of goodwill is not suitable for activity &1

What causes this issue?

The Complete Reduction of Goodwill indicator is selected in a data
record for activity &V1&. However, the indicator is applicable only to
divestitures and transfers, which encompasses the following activities:
08 - Partial transfer
09 - Total transfer
10 - Partial divestiture
11 - Total divestiture

System Response

The system automatically resets the indicator.

How to fix this error?

Deselect the Complete Reduction of Goodwill indicator in the respective
data record for activity&V1&.

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 G00738 - Complete reduction of goodwill is not suitable for activity &1 ?

  The SAP error message G00738, which states "Complete reduction of goodwill is not suitable for activity &1," typically occurs in the context of financial accounting, particularly when dealing with goodwill and its reduction in the SAP system. This error can arise during various processes, such as asset accounting or during the execution of specific transactions related to goodwill.
  Cause:
  The error message indicates that the complete reduction of goodwill is not applicable for the specified activity (denoted by &1). This can happen for several reasons, including:
  
  
  Inappropriate Activity Type: The activity you are trying to perform may not support the complete reduction of goodwill. For example, certain activities may only allow partial reductions or may not allow reductions at all.
  
  
  Configuration Issues: The system configuration for asset accounting or goodwill management may not be set up correctly, leading to restrictions on how goodwill can be reduced.
  
  
  Business Rules: There may be specific business rules or policies in place that prevent the complete reduction of goodwill for certain types of transactions or activities.
  
  
  Solution:
  To resolve the G00738 error, consider the following steps:
  
  
  Check Activity Type: Verify the activity type you are trying to perform. Ensure that it is appropriate for a complete reduction of goodwill. If not, consider using a different activity or method that allows for the desired reduction.
  
  
  Review Configuration: Check the configuration settings in the SAP system related to asset accounting and goodwill. Ensure that the settings allow for the complete reduction of goodwill where applicable.
  
  
  Consult Documentation: Review SAP documentation or help files related to goodwill management and asset accounting to understand the limitations and requirements for reducing goodwill.
  
  
  Business Process Review: If applicable, consult with your finance or accounting team to ensure that the business processes align with the actions you are trying to perform. There may be internal policies that dictate how goodwill should be managed.
  
  
  SAP Notes and Support: Check for any relevant SAP Notes that may address this specific error message. If the issue persists, consider reaching out to SAP support for further assistance.
  
  
  Related Information:
  
  
  Goodwill Accounting: Goodwill is an intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets. Understanding how goodwill is accounted for in SAP is crucial for managing this asset effectively.
  
  
  Asset Accounting Configuration: Familiarize yourself with the configuration settings in SAP for asset accounting, particularly those related to goodwill and intangible assets.
  
  
  Transaction Codes: Be aware of the relevant transaction codes in SAP that pertain to asset accounting and goodwill management, such as AS01 (Create Asset), AS02 (Change Asset), and AS03 (Display Asset).
  
  
  By following these steps and understanding the context of the error, you should be able to address the G00738 error effectively.