How To Fix GK665 - Treatment of goodwill must be chosen

SAP Error Message - Details

• Message type: E = Error

• Message class: GK - Messages for SAP Consolidation

• Message number: 665

• Message text: Treatment of goodwill must be chosen

What causes this issue?

Various elimination options are available for the treatment of
<DS:GLOS.goodwill>goodwill</> as part of the
<DS:GLOS.consolidation_of_investments>consolidation of investments.</>
These settings have not been made in the current
<DS:GLOS.dimension>dimension.</>

System Response

Warning

How to fix this error?

Choose at least one elimination option for goodwill.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message GK665 - Treatment of goodwill must be chosen ?

  The SAP error message GK665, "Treatment of goodwill must be chosen," typically occurs in the context of financial accounting and consolidation processes within SAP. This error indicates that the system requires a specification of how goodwill should be treated in the financial statements, particularly when dealing with mergers, acquisitions, or consolidations.
  Cause:
  The error arises when:
  
  Goodwill Treatment Not Defined: The system does not have a defined method for treating goodwill in the relevant configuration settings.
  Missing Configuration: The necessary configuration for goodwill treatment in the financial accounting module is incomplete or missing.
  Transaction Context: The error may occur during specific transactions, such as when creating or processing a consolidation entry or during the setup of a new company code.
  
  Solution:
  To resolve the GK665 error, you can follow these steps:
  
  
  Define Goodwill Treatment:
  
  Navigate to the configuration settings in SAP.
  Go to the path: Financial Accounting (FI) > General Ledger Accounting > Business Transactions > Goodwill.
  Here, you can specify how goodwill should be treated (e.g., amortization, impairment, etc.).
  
  
  
  Check Company Code Settings:
  
  Ensure that the company code settings are correctly configured to handle goodwill.
  Go to Transaction Code OX15 to check the settings for the relevant company code.
  
  
  
  Review Consolidation Settings:
  
  If the error occurs during consolidation, check the settings in the consolidation module.
  Ensure that the consolidation group settings include the treatment of goodwill.
  
  
  
  Consult Documentation:
  
  Review SAP documentation or help files related to goodwill treatment for specific guidelines and best practices.
  
  
  
  Testing:
  
  After making the necessary changes, perform a test transaction to ensure that the error no longer occurs.
  
  
  
  Seek Help from SAP Support:
  
  If the issue persists, consider reaching out to SAP support or consulting with an SAP expert who can provide more tailored assistance based on your specific configuration and business processes.
  
  
  
  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. Proper accounting for goodwill is crucial for accurate financial reporting.
  Amortization and Impairment: Depending on the accounting standards (e.g., IFRS, GAAP), goodwill may need to be amortized over a certain period or tested for impairment annually.
  SAP Modules: This error is primarily related to the Financial Accounting (FI) and Controlling (CO) modules in SAP.
  
  By following these steps and understanding the context of the error, you should be able to resolve the GK665 error effectively.