How To Fix FARR_CONTRACT_MAIN057 - Perf. oblig. &1 is marked as both Residual and Exclude from Allocation

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 057

• Message text: Perf. oblig. &1 is marked as both Residual and Exclude from Allocation

What causes this issue?

You are trying to mark the performance obligation both as "residual" and
"exclude from allocation". However, using residual price allocation and
excluding a performance obligation from price allocation are two
mutually exclusive settings. For more information, see
<DS:DE.FARR_RESIDUAL_POB>Residual</> and
<DS:DE.FARR_PREVENT_ALLOCATION>Exclude from Allocation</>.

System Response

The system prevents the changes from being saved.

How to fix this error?

Deselect either <LS>Residual</> or <LS>Exclude from Allocation</> on
this performance obligation.

Procedure for System Administrators

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_MAIN057 - Perf. oblig. &1 is marked as both Residual and Exclude from Allocation ?

  The SAP error message FARR_CONTRACT_MAIN057 indicates that a performance obligation (Perf. oblig.) is marked as both "Residual" and "Exclude from Allocation." This situation typically arises in the context of contract accounting or revenue recognition processes within SAP, particularly when dealing with performance obligations in the context of the new revenue recognition standards (IFRS 15 / ASC 606).
  Cause:
  
  Conflicting Settings: The performance obligation is configured in such a way that it is marked as both "Residual" and "Exclude from Allocation." This is contradictory because a residual obligation should be included in the allocation of revenue, while an obligation marked to be excluded should not be allocated.
  Configuration Issues: There may be issues in the configuration of the performance obligations in the contract management settings, leading to this conflict.
  Data Entry Errors: Incorrect data entry during the creation or modification of the performance obligation can lead to this error.
  
  Solution:
  
  
  Review Performance Obligation Settings:
  
  Navigate to the relevant performance obligation in the SAP system.
  Check the settings for the obligation and ensure that it is not marked as both "Residual" and "Exclude from Allocation." You will need to decide which setting is appropriate based on your business requirements.
  
  
  
  Adjust Configuration:
  
  If the settings are incorrect, adjust them accordingly. You may need to consult with your SAP configuration team or refer to the SAP documentation to understand the implications of changing these settings.
  
  
  
  Data Correction:
  
  If the error is due to incorrect data entry, correct the data in the system. Ensure that the performance obligation is set up correctly according to your organization's revenue recognition policies.
  
  
  
  Testing:
  
  After making the necessary changes, perform tests to ensure that the error does not reoccur and that the performance obligations are being processed correctly.
  
  
  
  Consult Documentation:
  
  Refer to SAP Notes or the SAP Help Portal for any specific notes related to this error message. There may be additional guidance or patches available that address this issue.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that might provide additional insights or solutions for this specific error message.
  Revenue Recognition: Familiarize yourself with the principles of revenue recognition as per IFRS 15 or ASC 606, as this will help in understanding how performance obligations should be configured.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have implemented.
  
  By following these steps, you should be able to resolve the error message FARR_CONTRACT_MAIN057 and ensure that your performance obligations are correctly configured in SAP.