How To Fix FARR_CONTRACT_MAIN694 - Other performance obligations are reversed to In Process

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 694

• Message text: Other performance obligations are reversed to In Process

What causes this issue?

When the system detects that a performance obligation that resides on a
leaf node is not completed, it make sure that performance obligations
above this incomplete performance obligation in the hierarchy are not
marked as completed either. If the system finds any status set
unexpectedly against this convention, it reverses the status to In
Process.

System Response

The system reverses certain performance obligations to the In Process
status when you save the changes.

How to fix this error?

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

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_MAIN694 - Other performance obligations are reversed to In Process ?

  The SAP error message FARR_CONTRACT_MAIN694 typically relates to the management of performance obligations in the context of revenue recognition, particularly under the guidelines of IFRS 15 or ASC 606. This error indicates that there are issues with the status of performance obligations associated with a contract, specifically that other performance obligations are being reversed to "In Process."
  Cause:
  
  Inconsistent Status: The performance obligations may have inconsistent statuses, where some are marked as completed while others are still in process.
  Data Entry Errors: There may be incorrect data entries or configurations in the contract or performance obligations.
  Incomplete Processing: The system may not have fully processed previous transactions related to the performance obligations, leading to a mismatch in statuses.
  Configuration Issues: There could be issues with the configuration of the revenue recognition settings in the system.
  
  Solution:
  
  Check Performance Obligations: Review the performance obligations associated with the contract. Ensure that their statuses are consistent and correctly reflect the current state of the contract.
  Reprocess Transactions: If there are incomplete transactions, try reprocessing them to ensure that all obligations are correctly updated in the system.
  Correct Data Entries: Verify and correct any data entry errors in the contract or performance obligations.
  Review Configuration: Check the configuration settings for revenue recognition in your SAP system. Ensure that they are set up correctly according to your organization's accounting policies.
  Consult Documentation: Refer to SAP documentation or notes related to revenue recognition and performance obligations for additional guidance.
  Contact SAP Support: If the issue persists, consider reaching out to SAP support for further assistance, providing them with the error message and context for better troubleshooting.
  
  Related Information:
  
  Revenue Recognition: Understand the principles of revenue recognition under IFRS 15 or ASC 606, as this will help in managing performance obligations effectively.
  SAP Notes: Look for relevant SAP Notes that may address this specific error or provide patches and updates that could resolve the issue.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to contract management and revenue recognition, such as FARR (for contract management) and FAS (for asset accounting).
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.