How To Fix FARR_CONTRACT_MAIN049 - Residual performance obligation &1 has a standalone selling price

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 049

• Message text: Residual performance obligation &1 has a standalone selling price

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_MAIN049 - Residual performance obligation &1 has a standalone selling price ?

  The SAP error message FARR_CONTRACT_MAIN049 typically relates to issues with residual performance obligations in the context of revenue recognition, particularly under the new revenue recognition standards (ASC 606 / IFRS 15). This error indicates that there is a residual performance obligation that has a standalone selling price, which may not be properly accounted for in the contract.
  Cause:
  
  Residual Performance Obligation: The error suggests that there is a performance obligation that remains after other obligations have been fulfilled, and it has a standalone selling price associated with it.
  Contract Configuration: The contract may not be configured correctly, leading to discrepancies in how performance obligations are recognized.
  Incomplete Data: There may be missing or incorrect data related to the performance obligations or their pricing.
  Revenue Recognition Settings: The settings for revenue recognition in the system may not align with the requirements for handling standalone selling prices.
  
  Solution:
  
  Review Performance Obligations: Check the performance obligations associated with the contract. Ensure that all obligations are correctly defined and that the residual obligation is valid.
  Check Standalone Selling Prices: Verify that the standalone selling prices for all performance obligations are correctly maintained in the system. If necessary, update the prices to reflect accurate values.
  Contract Configuration: Review the contract configuration in SAP to ensure that it aligns with the revenue recognition standards. Make adjustments as needed.
  Data Consistency: Ensure that all relevant data is complete and consistent. This includes checking for any missing entries or discrepancies in pricing.
  Consult Documentation: Refer to SAP documentation or notes related to revenue recognition and performance obligations for specific guidance on resolving this error.
  Testing: After making changes, test the contract processing again to ensure that the error is resolved.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on handling performance obligations.
  Revenue Recognition Standards: Familiarize yourself with ASC 606 and IFRS 15, as these standards govern how revenue should be recognized and may provide context for the error.
  SAP Community: Engage with the SAP Community forums for insights from other users who may have encountered and resolved similar issues.
  
  If the problem persists after following these steps, it may be beneficial to consult with an SAP expert or your organization's SAP support team for further assistance.