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

FARR_CONTRACT_MAIN057 - Overview

• 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.

FARR_CONTRACT_MAIN057 - Details

• 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