How To Fix FARR_CONTRACT_MAIN140 - Recon. account not defined for customer &1 of company code &2

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 140

• Message text: Recon. account not defined for customer &1 of company code &2

What causes this issue?

Revenue Accounting cannot find the reconciliation account defined for
customer &V1& of company code &V2&. The system requires this account for
determining the accounts used for certain revenue-related postings.

System Response

The system prevents the performance obligation and its contract from
being created or updated. The contract is listed in the Contracts with
Errors worklist for review.

How to fix this error?

Make sure that the reconciliation account is defined in the company code
segment of the customer master record.

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_MAIN140 - Recon. account not defined for customer &1 of company code &2 ?

  The SAP error message FARR_CONTRACT_MAIN140 indicates that there is a missing reconciliation account for a specific customer in a particular company code. This error typically arises in the context of contract management or accounts receivable processes within SAP.
  Cause:
  The error occurs when:
  
  A customer master record does not have a reconciliation account assigned in the general ledger (G/L) for the specified company code.
  The system is trying to process a transaction related to that customer, but it cannot find the necessary account to post the transaction.
  
  Solution:
  To resolve this error, you need to ensure that the reconciliation account is properly defined for the customer in the relevant company code. Here are the steps to do this:
  
  
  Check Customer Master Data:
  
  Go to the transaction code FD02 (Change Customer) or FD03 (Display Customer).
  Enter the customer number and company code.
  Navigate to the Company Code Data section.
  Check the Reconciliation Account field. If it is blank or incorrect, you need to update it.
  
  
  
  Assign a Reconciliation Account:
  
  If the reconciliation account is missing, you will need to assign a valid reconciliation account. This account should be a G/L account that is set up for accounts receivable.
  You can find the appropriate reconciliation account by consulting your finance team or checking the chart of accounts.
  
  
  
  Save Changes:
  
  After making the necessary changes, save the customer master record.
  
  
  
  Test the Transaction:
  
  After updating the customer master data, try to execute the transaction again that was causing the error to see if the issue is resolved.
  
  
  
  Related Information:
  
  Reconciliation Account: This is a G/L account that is used to aggregate the balances of all sub-ledgers (like accounts receivable). Each customer should have a corresponding reconciliation account to ensure proper financial reporting.
  Transaction Codes:
  
  FD01: Create Customer (Company Code)
  FD02: Change Customer (Company Code)
  FD03: Display Customer (Company Code)
  
  
  Master Data Maintenance: Regularly review and maintain customer master data to ensure that all necessary fields are populated correctly to avoid similar errors in the future.
  
  If the issue persists after following these steps, it may be necessary to consult with your SAP support team or a functional consultant for further investigation.