How To Fix FARR_CONTRACT_DB051 - &1 performance obligation entries have been flagged as "cost recognition"

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_DB - Revenue Accounting - Contract DB Access

• Message number: 051

• Message text: &1 performance obligation entries have been flagged as "cost recognition"

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_DB051 - &1 performance obligation entries have been flagged as "cost recognition" ?

  The SAP error message FARR_CONTRACT_DB051 indicates that there are performance obligation entries in a contract that have been flagged for "cost recognition." This typically occurs in the context of SAP's Revenue Accounting and Reporting (RAR) module, which is used to manage revenue recognition in compliance with accounting standards such as IFRS 15 and ASC 606.
  Cause:
  The error message can arise due to several reasons:
  
  Incorrect Configuration: The configuration settings for revenue recognition or performance obligations may not be set up correctly.
  Data Inconsistencies: There may be inconsistencies in the data related to performance obligations, such as missing or incorrect entries.
  Cost Recognition Flag: The performance obligations may have been incorrectly flagged for cost recognition, which can lead to conflicts with revenue recognition processes.
  Incomplete Processing: The system may not have completed the necessary processing steps for the performance obligations, leading to this error.
  
  Solution:
  To resolve the error, you can take the following steps:
  
  
  Check Configuration:
  
  Review the configuration settings for revenue recognition in the RAR module. Ensure that the settings for performance obligations and cost recognition are correctly defined.
  
  
  
  Review Performance Obligations:
  
  Go to the relevant contract and check the performance obligations. Ensure that they are correctly set up and that the cost recognition flag is appropriate for each obligation.
  
  
  
  Data Consistency Check:
  
  Perform a data consistency check to identify any discrepancies in the performance obligation entries. This may involve checking for missing data or incorrect entries.
  
  
  
  Adjust Cost Recognition Flags:
  
  If certain performance obligations should not be flagged for cost recognition, adjust the flags accordingly. This may involve changing the settings in the contract or the performance obligation itself.
  
  
  
  Reprocess the Contract:
  
  After making the necessary adjustments, reprocess the contract to see if the error persists. This may involve running specific transactions or reports in SAP to refresh the data.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or notes related to the FARR_CONTRACT_DB051 error for any specific guidance or updates that may apply to your version of SAP.
  
  
  
  Seek Support:
  
  If the issue persists after trying the above steps, consider reaching out to SAP support or your internal SAP team for further assistance. They may have additional insights or tools to diagnose and resolve the issue.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional troubleshooting steps.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP RAR, such as those for managing contracts and performance obligations (e.g., FARR_CONTRACT, FARR_OBLIGATION).
  Training and Documentation: Ensure that users involved in revenue recognition processes are adequately trained and have access to documentation that outlines the procedures and configurations required.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.