How To Fix GK387 - Posting in local currency of the investee unit &1 is not possible

GK387 - Overview

• Message type: E = Error

• Message class: GK - Messages for SAP Consolidation

• Message number: 387

• Message text: Posting in local currency of the investee unit &1 is not possible

What causes this issue?

You have specified investee unit &V1&. No consolidation of investments
method used for posting goodwill in local currency is assigned to this
investee unit in &V3&/&V2&.

System Response

The fields are no longer ready for input. If you have already entered
the book value in the local currency of the investee unit or the date of
acquisition, the system deletes these entries.

How to fix this error?

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

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

GK387 - Details

• The SAP error message GK387, which states "Posting in local currency of the investee unit &1 is not possible," typically occurs in the context of financial transactions involving investments or equity accounting. This error indicates that there is an issue with the currency settings for the investee unit in question.
  
  Cause:
  
  Currency Mismatch: The local currency of the investee unit does not match the currency of the transaction being posted. This can happen if the transaction is being recorded in a currency that is not supported by the investee unit's configuration.
  Incorrect Configuration: The investee unit may not be properly configured to allow postings in its local currency. This could be due to settings in the company code or controlling area.
  Missing Exchange Rate: If the transaction currency is different from the local currency, there may be a missing exchange rate for the conversion.
  Posting Period Issues: The posting period may be closed or not