How To Fix G06007 - Reported push-down data results in extraordinary amort. of goodwill

G06007 - Overview

• Message type: E = Error

• Message class: G06 - SAP Cons - Error Message re. Consolidation of Investments

• Message number: 007

• Message text: Reported push-down data results in extraordinary amort. of goodwill

What causes this issue?

The reported push-down data for investee unit &V1& with partner unit
&V2& contains a valuation allowance, which does not correspond to the
ordinary amortization of goodwill. Therefore, an extraordinary
amortization of goodwill will take place.

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?

Check the reported push-down data of investee unit &V1& with partner
unit &V2&.

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

G06007 - Details

• The SAP error message G06007, which states "Reported push-down data results in extraordinary amortization of goodwill," typically arises in the context of financial reporting and consolidation processes, particularly when dealing with business combinations and the associated accounting for goodwill.
  
  Cause:
  
  
  Push-Down Accounting: This error often occurs when push-down accounting is applied, which means that the financial statements of a subsidiary reflect the fair value adjustments made during a business combination. If the adjustments lead to an extraordinary amortization of goodwill, this error is triggered.
  
  
  Goodwill Calculation Issues: The calculation of goodwill may be incorrect due to improper allocation of purchase price or failure to account for certain assets and liabilities correctly.
  
  
  Inconsistent Data: There may be inconsistencies in the data being reported, such as differences in the treatment of goodwill across different periods or entities.
  
  
  
  Configuration Issues: Incorrect configuration in the SAP system regarding the handling of goodwill and amortization can also lead to this