How To Fix FARR_CONTRACT_MAIN010 - Standalone selling price of performance obligation &1 less than zero

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 010

• Message text: Standalone selling price of performance obligation &1 less than zero

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_MAIN010 - Standalone selling price of performance obligation &1 less than zero ?

  The SAP error message FARR_CONTRACT_MAIN010 indicates that the standalone selling price (SSP) of a performance obligation is less than zero. This error typically arises in the context of revenue recognition and contract accounting, particularly when dealing with contracts that involve multiple performance obligations.
  Cause:
  
  Incorrect Pricing Configuration: The standalone selling price for the performance obligation may not have been set correctly in the system. This could be due to incorrect pricing conditions or missing data.
  Negative Values in Pricing: There may be a calculation or data entry error that results in a negative value for the standalone selling price.
  Data Inconsistencies: There could be inconsistencies in the data related to the performance obligation, such as incorrect assignment of costs or pricing conditions.
  Contract Modifications: If there have been recent changes or modifications to the contract, it may have inadvertently affected the pricing of the performance obligations.
  
  Solution:
  
  Check Pricing Conditions: Review the pricing conditions for the performance obligation in question. Ensure that the standalone selling price is correctly defined and does not result in a negative value.
  Review Contract Data: Verify the contract data and ensure that all relevant fields are populated correctly. Look for any discrepancies that might lead to incorrect pricing.
  Adjust Performance Obligation: If the standalone selling price is indeed supposed to be zero or negative due to specific business rules, consider adjusting the performance obligation or the pricing strategy accordingly.
  Consult Documentation: Refer to SAP documentation or configuration guides related to revenue recognition and performance obligations to ensure compliance with accounting standards.
  Test in a Sandbox Environment: If possible, replicate the issue in a test environment to understand the root cause without affecting production data.
  Contact SAP Support: If the issue persists and cannot be resolved through the above steps, consider reaching out to SAP support for further assistance.
  
  Related Information:
  
  Revenue Recognition: Understanding the principles of revenue recognition, especially under IFRS 15 or ASC 606, can help clarify how standalone selling prices should be determined.
  SAP Configuration: Familiarize yourself with the configuration settings in SAP related to contract management and revenue recognition, as these can significantly impact how performance obligations are handled.
  User Forums and Communities: Engaging with SAP user communities or forums can provide insights from other users who may have encountered similar issues.
  
  By addressing the root cause of the error and ensuring that the standalone selling prices are correctly configured, you should be able to resolve the FARR_CONTRACT_MAIN010 error.