How To Fix G06024 - Pushdown amortization for investee unit &1 is inadequate

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 024

• Message text: Pushdown amortization for investee unit &1 is inadequate

What causes this issue?

For investee unit &V1&, the reported amortization of pushdown goodwill
with investor &V2& does not match the value for the ownership share
change reflected in activity &V3& with the number &V4&.

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?

Activity &V3& with the number &V4& clears the differential amount that
results from the inadequate reported value. To eliminate the discrepancy
between the reported pushdown value and the change in ownership share,
you need to adjust the reported financial data.

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 G06024 - Pushdown amortization for investee unit &1 is inadequate ?

  The SAP error message G06024, which states "Pushdown amortization for investee unit &1 is inadequate," typically occurs in the context of financial accounting and consolidation processes, particularly when dealing with investments in subsidiaries or joint ventures. This error indicates that the pushdown amortization for the investee unit (identified by &1) is not sufficient to cover the necessary adjustments related to the investment.
  Cause:
  
  Inadequate Amortization: The pushdown amortization amount calculated for the investee unit is less than what is required based on the fair value adjustments made during the acquisition.
  Incorrect Configuration: There may be issues with the configuration settings related to the amortization of fair value adjustments in the system.
  Data Entry Errors: Incorrect or incomplete data entries in the investment or consolidation settings can lead to this error.
  Changes in Ownership: If there have been changes in ownership percentages or structures, the amortization calculations may not align with the current ownership structure.
  
  Solution:
  
  Review Amortization Calculations: Check the calculations for pushdown amortization for the investee unit. Ensure that the amortization is calculated correctly based on the fair value adjustments.
  Adjust Configuration Settings: Verify the configuration settings in the SAP system related to pushdown accounting and amortization. Ensure that they are set up correctly according to your organization's accounting policies.
  Correct Data Entries: Review the data entries related to the investment in the investee unit. Ensure that all relevant information is accurately entered and up to date.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidance on handling pushdown amortization and related configurations.
  Engage with SAP Support: If the issue persists, consider reaching out to SAP support for assistance. They can provide insights based on the specific version of SAP you are using and any known issues.
  
  Related Information:
  
  Pushdown Accounting: This is an accounting method used when a parent company acquires a subsidiary. It allows the subsidiary to reflect the fair value of its assets and liabilities on its balance sheet.
  Amortization: This refers to the gradual reduction of an intangible asset's value over time. In the context of pushdown accounting, it relates to the allocation of the fair value adjustments over the useful life of the acquired assets.
  SAP Modules: This error is typically encountered in SAP modules related to Financial Accounting (FI) and Consolidation (EC-CS or BPC).
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the G06024 error in your SAP system.