Goodwill calculation

Goodwill is the difference between the purchase price of an intercompany and the values that you specify in the Equity and Hidden reserves accounts. To calculate goodwill, this formula is used:

Purchase price - (Equity + Hidden reserves) = Goodwill

Goodwill is calculated automatically. The calculation is always in the local currency of the acquired intercompany. All values that you specify in the Equity and Hidden reserves accounts are also in the currency of the intercompany.