How To Fix G06011 - Push-down goodwill amortization results in negative remaining book value

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 011

• Message text: Push-down goodwill amortization results in negative remaining book value

Self-Explanatory Message

Since SAP believes that this specific error message is 'self-explanatory,' no more information has been given.The majority of messages in the SAP system have a message text, however this is frequently insufficient to comprehend or resolve the problem.

To make things easier, more detailed information is frequently added to describe the issue, how to fix it, and the necessary steps or configuration modifications.

Unfortunately, there isn't any extra information in this error notice.

What else can you do?

First, use our AnswerBot below to get a possible cause and solution (requires a premium subscription).

Also, review the in-depth Common Questions & Answers listed below; you could discover a solution there or be able to connect with others who have faced similar challenges.

You can also try searching the SAP support portal (support.sap.com) but you need a special user ID to access it. It is possible that an SAP support note exists that provides additional details about the mistake or even steps for fixing it.

Smart SAP Assistant

• What is the cause and solution for SAP error message G06011 - Push-down goodwill amortization results in negative remaining book value ?

  The SAP error message G06011, which states "Push-down goodwill amortization results in negative remaining book value," typically occurs in the context of financial accounting and consolidation processes within SAP. This error is related to the treatment of goodwill in business combinations and the amortization of that goodwill.
  Cause:
  
  
  Push-Down Accounting: This error arises when push-down accounting is applied, and the amortization of goodwill exceeds the remaining book value of the acquired entity. Push-down accounting allows the acquirer to recognize the acquired entity's assets and liabilities at fair value, including goodwill.
  
  
  Amortization Calculation: If the amortization period for goodwill is not set correctly or if the amortization amount is too high, it can lead to a situation where the remaining book value of goodwill becomes negative.
  
  
  Data Entry Errors: Incorrect data entry during the acquisition or consolidation process can also lead to this error. For example, if the initial goodwill amount is incorrectly recorded or if the amortization schedule is not aligned with the actual values.
  
  
  Solution:
  
  
  Review Goodwill Calculation: Check the calculation of goodwill to ensure that it has been correctly determined based on the fair value of the acquired assets and liabilities.
  
  
  Adjust Amortization Schedule: Review the amortization schedule for goodwill. Ensure that the amortization period and amounts are set correctly. If necessary, adjust the amortization to prevent it from exceeding the remaining book value.
  
  
  Check Configuration Settings: Verify the configuration settings in SAP related to push-down accounting and goodwill amortization. Ensure that they are set up according to the accounting standards and company policies.
  
  
  Data Correction: If there are data entry errors, correct the relevant entries in the system. This may involve adjusting the initial goodwill amount or correcting the amortization entries.
  
  
  Consult Documentation: Refer to SAP documentation or consult with your SAP support team for specific guidance on handling this error in your version of SAP.
  
  
  Testing: After making adjustments, perform a test run to ensure that the error does not reoccur and that the financial statements reflect the correct values.
  
  
  Related Information:
  
  Goodwill Accounting: Understanding the principles of goodwill accounting, including how it is calculated and amortized, is crucial for resolving this error.
  SAP Modules: This error is typically encountered in SAP FI (Financial Accounting) and CO (Controlling) modules, particularly during consolidation processes.
  Regulatory Compliance: Ensure compliance with relevant accounting standards (e.g., IFRS, GAAP) regarding goodwill and its amortization.
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support or a financial consultant with expertise in SAP financial modules.