Amortization of negative goodwill

HI,
I need to configure the system in such a way that the positive GW (FS Item 2710) will be amortizated on a 5 years time but the negative GW (1280 FSI) it is not to be amortizated.
How should I configure the C/I - System utilization? I need to choose between one/several of the following choices:
1- Extraord.Amortization of Neg. Goodwill? or
2- Ordinary Amortization of Negative Goodwill? or
3- Direct Elimination of Negative Goodwill? or
4- Periodic Reduction of Negative Goodwill?
Thanks!

Hello all
Accumulated amortization of negative good' has not been maintained and system is generationg error message during COI process execution.
does any one know about what kind of item - especially BS Item whether it is ASSET or Equity
I beleive it should be EQUITY because, system hinting that DEFINE ITEM need to be assigned at MINORITY INTEREST ITEMS
EQUITY - MINORITY ITEM
it is pointing towards GLOBAL GOODWILL : Offsetting item for your reference purpose and appreciated your input
>>> Still I am looking expert advice >>>>>
appreciated any comments
thx

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COI Investment data reading

if the AFD Investment data has to be read thru 'Totals' tables does it require that all ECC entry for investment need to have the Percentage of investment, Investee fields to be filled in? Can the system read the 'ECC Investment data' with out these fields?
Is there any other way to populate these fields when reaching from ECC to BI/BCS?
Is there any other additional fields to be captured in ECC for Investment entries other than above two fields?

Hi Eugene,
I really need your advice on my AFD things. Hope you can help
Now my Location Values of AFD are as follows:
Read Investment Data From : Additional Financial Data
Read Equity Data From : Additional Financial Data
Read Equity Holdings Adjs From : Additional Financial Data
The user is only performed "Impairment Test" for the goodwill.
So I only select : "Extraordinary Amortization of Goodwill & Extraordinary Amortization of Negative Goodwill" per method.
My question is, for first consolidation, what should I put in AFD manual data entry as first step to record investment, equity & the goodwill? Will the system calculate the goodwill automatically or we need to manually entered journal entry for impairment test?
Providing that the holding company owns 73% of its subsidiary.
Thanks a bunch

Equity method - First cons

There is a requirement that
as per local GAAP , units following equity method
( non consolidated units ) , should identify ( not post )
the goodwill / negative Goodwill which arise out of First
consolidation. as notes to Financial statements.
However during subsequent cons I can post equity holding
adjustments to this investment.
But the problem is system is posting the euity adjustments
as susbsequent consolidation.
So , I want to avoid the First consolidation , but still
be able to post subsequent consolidation.
Please share with me any best posiible way out.

we used the statistical investment and equity items in AFD.
If we use statistical items , then system does First
consolidation. It will not post any document in FC.
However equity adjustments postings will happen as per the
investment account given in equity method postings.

COI activity - change in capitalization (Rights issue)

Hi,
Please can you provide a solution to handle the following business scenario. (SAP help documentation mentions that the product does not support the decrease in stake resulting from change in capitalization)
How to handle Rights Issue resulting in stake dilution of holding company?
Business Scenario - Co. A has 80% stake in company B (at first consolidation level)
Company B issues additional equity(rights issue) which is not exercised by Co. A. This is bought by others(minority)
As a result, the stake of Co. A in B decreases from 80% to say 60%(dilution of stake of A)
Can you please tell how should the AFD(in terms of COI activity numbers/types) be provided to handle this situation. Because for activity - Increase in capitalization - SAP standard says that the % shareholding doesnt change.
Waiting for your valuable inputs.
Thanks
AJ

Hi AV,
I'll try to give the entire scenario in detail -
Co. A is parent company of Co. B (100% subsidiary)
First acquisition -
Investment data 100000
Equity share capital - 100000
Reserves 23205
hence, total equity - 71795
Goodwill posted after first conso 28205
Next period - Co. B increases its equity share capital by -50000
which is provided to system in AFD with CI activity 05
Co. A's share gets diluted because all additional equity is taken by external parties.
Say it gets diluted to 82.11%
So in investment data I provided -17.89% as change in shares, with activity type 10 and investment value zero.
System posts two docs - one for increase in capitalization and another for partial divestiture
1. Increase in capitalization document -
Equity share capital is reversed(+50000)
and entire -50000 goes in negative goodwill (since the investment was zero)
2. Partial divestiture document - 8945 (17.89% of 50000)is posted in "Profit from divestiture" and Minority interest is also created of 8945
This doesnt serve my purpose of "Dilution of stake resulting from additional equity issued by subsidiary company"
Goodwill posted earlier(in first conso) is not getting affected?
Please give me some inputs because this is a very common business scenario..and whoever has done a BCS implementation must have tested for this scenario...
Regards
AJ

COI Method in Accounting Technique

Hi
my client is looking to clear system Generated Goodwill where this is offset with Negative Goodwill.
We were looking to impair both the +ve and -ve Goodwill. However the current config posts the Amortisation Balance sheet entry to seperate accounts than the Capitalised Goodwill/ accounts.
There is 1 single COI methiod assigned to all companies. My question - if we create a seperate COI method for the different Amortisation treatment, are there any downfalls to changing the assigned COI method in the accounting techniques, during the fiscal year. Also once changed, can this be changed back again in the next period ?
Regards

Dan
I am trying a few things in a sandbox, and we do not get PL02/12/22 docs, however upon CoI, you get a method change doc.
I have come across another issue in that I have gone back to the period in which GW was created, updated the GW activity to amortise the GW, and then rerun COI. The amortisation is posting at different group levels than the GW. This seems like a bug, but I was wondering whether anybody had come across this before.
Regards

Historical Goodwill Amortization

Hi Gurus,
we are planning to start a new consolidation environment.
One problem we have is related to legacy amortization, since we wolud like to perform automatic goodwill amortization.
We do not have an underlying SAP EC-CS or FI-LC, but we are speaking about the historical goodwill that was generated in the past and now must be considered as well since we are going to perform the first consolidation.
We found OSS Notes:
610218 - Legacy data transfer of manual goodwill entries
379665 - SAP consolidation: Legacy data transfer for goodwill entries
and would like some of you to share your own experience in this situation, with this notes.
Let's say this year (2009) is Y: as a consequence of First Consolidation BCS will calculate 1000 as Goodwill and we be finally depreciated up to year 2018.
Historical Goodwill emerging in Y-4 (2005) was 1000, to be depreciated in 10 years (100 for each year): so capitalided goodwill depreciation is 400.
So the questions are:
1. Goodwill will be depreciated up to year Y+6 (2013), considering past depreciation quotes?
2. Will these postings be considered in further operations (eg. divestiture or organizational changes)?
3. Are there any other ways to reach this result without AFD?
Thanks in advance for your cooperation.
GFV

Hi guys,
the question concerns technical aspects rather than functional or legal issues.
In other word the situation is the following:
I have Goodwill emerging in past years (let's say 2005, 2006, 2007, ...), that was amortized in Legacy system: so, in each year, we have some postings for each of the (past) Goodwill(s).
This year 2009 will be First Consolidation: users want amortizations related to past Goodwill(s) to be recorderd automatically by SEM-BCS, without manual intervention
So the question are:
1. Can this be requirement be satisfied with standard functionalities?
2. Will Goodwill AFD manually recorded for the past years be considered within First Consolidation?
As per my comprehension Dan says this requirement can be satisfied.
Thanks for your cooperation.
GFV

Amortization of Goodwill after method change

Hi all,
Need some help.
It is not really clear to me how does BCS take into account (equity-method)goodwill, and further more - amortization of goodwill, in/after Method Change activity.
Business scenario
Step 1.
Company "A" (equity - 1000 monetary units) is consolidated using equity method (25%) since Q4/2005 (parent company invested 4000 monetary units).
Step 2.
At the end of Q4/2006 method change takes place, equity to purchase (25% --> 51%).
Step 3.
At the end Q4/2007 parent company increases its ownership in company "A" (51% --> 60%).
Customizing
- COI method "METH1" utilizes equity method as an accounting technique. Acquisitions - group shares. Extraordinary amortization of goodwill
- COI method "METH2" utilizes purchase method as an accounting technique. Acquisitions - group shares. Ordinary amortization of goodwill, starting next Q, during 20 years.
Expected behavior
Step 1.
Equity-method goodwill arises (3750 monetary units).
Step 2.
"New" goodwill arises (3910 monetary units) from 26% (25% --> 51%).
Method changes from "METH1" to "METH2".
Next Q (Q1/2007) goodwill (3750 + 3910) is amortized - 95,75 (over 20 years, per Q).
Step 3.
"New" goodwill arises from 9% (51% --> 60%) and amortized next Q.
"Previous" is amortized.
Reality bites...
Step 1.
Equity-method goodwill arises (3750 monetary units).
Step 2.
"New" goodwill arises (3910 monetary units) from 26% (25% --> 51%).
Method changes from "METH1" to "METH2".
Next Q (Q1/2007) goodwill remains the same - goowdwill is not amortized.
Step 3.
"New" goodwill arises from 9% (51% --> 60%).
Only the newly arised goodwill (9%) is amortized next Q.
"Previous" is still not amortized.
Is it "standard" behavior?
What causes the difference in Steps 2 and 3?
Thanks in advance.

Hello Anton,
It's a complicated question that might be answered, IMHO, only by people who experienced the situation. Or by those who make some experiments in the system. Looks like there is nobody who have or did this. Sorry!

Extraordinary Amortization of Goodwill

Hi,
I want to adjust the value of goodwill thru Impairment Test. Can it be done thru extraordinary amortization of goodwil?
Please suggest,
Thanks,
USR

Found the answer

Amortization calculation for an asset

Dear All,
I received a requirement from the users to do amortization for a fixed asset. Can somebody please help me to understand the business process of amortization and what is the requirement to do amortization for a fixed asset since I do not have prior experience on this.
I am looking forward your help
Thanks & Regards
Ramki

Hi Ramki,
I'm not sure if you really mean amortization:
The process of reducing the value of intangible assets by spreading the costs over the useful life of the asset.
This can also be achieved by making a value adjustment on the balance sheet key date. From a consolidation point of view, the amortization of goodwill during the first consolidation is relevant. Typically, the procedures for amortization are governed by external regulatory bodies.
Or if you mean depreciation:
http://help.sap.com/saphelp_46c/helpdata/de/4f/71fd71448011d189f00000e81ddfac/frameset.htm
hiere you'll find under the 4th link a complete documnetation
regards Bernhard
Edited by: Bernhard Kirchner on Oct 22, 2010 12:18 PM

Goodwill for Equity Method

Hi All,
Could you please give me any suggestion how I config first consolidation for consolidation unit that use equity method because after run COI task (in UCMON), system record Goodwill account and decrease investment account (amount same that we input in additional financial data) but we no need this record.
Thanks in advance.

Hi,
I need your help on the following :-
I have setup the consolidation method to directly eliminate the goodwill calculated to an offsetting FS item 124905, both in the positive elimination of goodwill and negative elimination of goodwill.
However when i execute the consolidation of investments, although the system correctly calculating the goodwill, i cannot see the way how it eliminates the goodwill by posting offsetting posting to the 124905 FS item. Under the document node of the consolidation of investments results i cannot see this FS item 124905 anywhere.
May i know where can i see the offsetting posting of the goodwill?
Thanks.

Direct Elimination of Goodwill - Where the offsetting entry is posted?

Hi,
I have setup the consolidation method to directly eliminate the goodwill calculated to an offsetting FS item 124905, both in the positive elimination of goodwill and negative elimination of goodwill.
However when i execute the consolidation of investments, although the system correctly calculating the goodwill, i cannot see the way how it eliminates the goodwill by posting offsetting posting to the 124905 FS item. Under the document node of the consolidation of investments results i cannot see this FS item 124905 anywhere.
May i know where can i see the offsetting posting of the goodwill?
Thanks.

Hi,
1) Yes all the companies are attached to a method where direct elimination of goodwill has been activated.
2) Yes nothing is declared in AFD goodwill.
In the direct elimination tab i have specified 11051111 as the original cost item and 11021201 as the offsetting item of original cost.
Can you please explain what are the postings of goodwill under the above direct elimination method?
What i am getting is the below wherein the goodwill is posted to 11051111 but nothing is posted to the offsetting item 11021201
DocNo.       XD LnItm Co.    Item       Name                 PCo.   TType                   PV GC
                                                                                1      1002   11021100   Subs-Cost                   125            37.307.800,00-
                2      1005   39011000   MI-Ordinary Shares          600            20.000.000,00
                3      1005   39061000   MI-RP B/f                   600             5.983.698,24
                4      1005   39054000   MI-CGF Reserve              610             5.000.000,00
                5      1005   39062000   MI-RP-Current Yr            610             9.888.756,47
                6      1005   39065100   MI-RP-Div Pd                610             6.900.000,00-
                7      1005   39064100   MI-RP-Apprn Trsf            660             5.000.000,00-
                15     1002   11051111   +ve G/w-Cost:Grp     1005   810             8.335.345,29
You can see the full screen shots of all the configs here in this attachment :-
http://wikisend.com/download/928298/COI%20Config.zip

Student Loan Goodwill Help (New Member)

Hello all, I am a new member on this forum. I am trying to improve my credit score. The only negative items on my reports relate to student loans. I have been reading some posts regarding goodwill and would like to give it a shot. I was thinking of retaining a firm like Lexington Law, but I feel I can do pretty much everything that they offer and save 100 dollars a month. I have two loans from AES & Nelnet. I have a couple of 120's from 2013 & 2014. My plea for goodwill will revolve around my being a direct victim of Hurricane Sandy. My house and family were affected and I faced 2 years of hardship. Now that I am back on solid footing since the end of last year, I have been paying my loans on autopay every month. Any help in terms of contacts at AES and Nelnet would be appreciated, as well as any strategies. Thanks!

I'm a little bit confused, your post starts out talking about Parent Plus loans - which are federally backed loans. These loans cannot be consolidated by the student because they cannot be in the student's name. Parent Plus loans are borrowed by the parent, and are ultimately the parent's responsibility to repay. Any type of student loan is very difficult to discharge in bankruptcy, because you have to meet a much higher standard and go through a distinct process to establish that you will never be able to repay the loan and that requiring you to repay them would constitute a serious hardship. Ultimately the problem here is not whether these Parent Plus loans were discharged in your bankruptcy (they likely weren't), it is that they are not your debt. Do you and your mother have similar names, social security numbers or birth dates? I would contact the Student Loan Ombudsman and see if they can help you get Sallie Mae to understand that these are not your loans.

Dispute or wait for items to fall off? Bank of America goodwill letter denied

I plan to apply for a mortgage pre-approval in 02/2016 and want to remove all negative information from my credit reports before doing so. The only thing standing between me and a clean credit report is Bank of America and a CC i had with them. Late payments are 30 days late Nov, 60 days late Dec 2008, 30 days late April 2009, 60 days late May 2009, and 90 days late June 2009 and 30 days late January 2011. I have sent 2 goodwill letters to their general address from the credit report and one email to the CEO and they shut me down each time by saying that the information is being reported accurately. I believe that they are reporting inaccurate information and I think I would be able to have this removed from my report, but is it worth it at this time? Its been 6 years since 5 of the 6 late payments occurred and was wondering if removing the late payments would boost my score or hurt my score due to losing the age of the account, which was opened in 2005. My current AAoA is 4 years 4 months. The inaccurate information shows that the account was closed and opened multiple times, and the last reported date was 2/2015 despite my last payment being made in 2/2014 to pay off the old money owed on the card. Also, its showing a $25 monthly payment. Any suggestions?

kokenwa wrote:
I plan to apply for a mortgage pre-approval in 02/2016 and want to remove all negative information from my credit reports before doing so. The only thing standing between me and a clean credit report is Bank of America and a CC i had with them. Late payments are 30 days late Nov, 60 days late Dec 2008, 30 days late April 2009, 60 days late May 2009, and 90 days late June 2009 and 30 days late January 2011. I have sent 2 goodwill letters to their general address from the credit report and one email to the CEO and they shut me down each time by saying that the information is being reported accurately. I believe that they are reporting inaccurate information and I think I would be able to have this removed from my report, but is it worth it at this time? Its been 6 years since 5 of the 6 late payments occurred and was wondering if removing the late payments would boost my score or hurt my score due to losing the age of the account, which was opened in 2005. My current AAoA is 4 years 4 months. The inaccurate information shows that the account was closed and opened multiple times, and the last reported date was 2/2015 despite my last payment being made in 2/2014 to pay off the old money owed on the card. Also, its showing a $25 monthly payment. Any suggestions?i would say it depends on what your scores are at right now, if you are high 600 to 700 then i wouldnt worry too much about it.

Negative Asset Acquisition

Hi,
I want to correct an asset which was created in a wrong asset class. This asset class has not been set up for retirement. Depreciation has been run for two months already.
So now i want to correct this asset.
Can you please suggest a way.
I was thinking maybe i can reverse the amortization booked uptill now and then do a negative acquisition and then block the asset.
Please suggest.
Thanks,
MS

Steps-
1)Reverse the depreciation.
2)Choose a Cost Element book negative costs in that cost element.
3)Create an internal order and define the settlement rule.
4)Transfer the negative cost to the IO.
5)Settle the IO to the asset.
6)Rerun the depreciation as done before.
Sudeep

How can I deal with negative marking in a quiz marking scheme?

I wonder if anyone can help me with a problem I have in developing the 'code' for a marking scheme for an exam in Captivate 8. I would be very grateful for pointers towards a viable solution. At the moment I am just thrashing around.
My background is in C++ and I think part of my problem is in trying to find analogues of functions I would use in that environment. My experience with Captivate is limited to developing fairly simple training courses but now I need to put an existing exam on line, maintaining its relatively complicated marking scheme, which is as follows:
The paper is multiple choice, each question having four statements, one (or at the most two) of which is true. A completely correct answer gets 4 marks so where there are two correct statements each gets 2 marks. So far, so easy.
The difficulty arises from an element of negative marking. If 3 or more statements are selected, the score is 0 marks. If there is a single correct statement and it and an incorrect statement are selected, the score is 2 marks. If there are 2 correct statements and one of them is selected, the score is 2 marks. If an incorrect statement is selected as well, the score is 1 mark.
I had assumed I could use conditional logic and user variables on a slide-by-slide basis to provide a score value and then assign it to the appropriate system quiz variable, but it seems I can't assign values to variables in a quiz slide. That would have been too easy...
So, can anybody advise me on an approach that keeps the advantages of using the quiz framework, including the use of the Review function?
Any help very gratefully received.

If you use SCORM 1.2 for reporting, negative scores will be converted to zero, because it doesn't allow negative score.
If you want to keep to Review functionality, you need to stay with the default question slides. There are some tweaking possibilities but changing the score is not one of them.
Question Question Slides in Captivate - Captivate blog
Question Question Slides - Part 2 - Captivate blog
I think the only possible way is to use JS, but then you'll not be able to keep the functionality of the Question slides, you are in custom question slides. Plenty of examples of custom questions can be found on my blog as well.

Amortization of negative goodwill

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