How To Fix FARR_PROCESS_CHECK013 - Performance obligation &1 has a right of return. This is not supported

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_PROCESS_CHECK - Messages for Input Checks in Process Layer

• Message number: 013

• Message text: Performance obligation &1 has a right of return. This is not supported

What causes this issue?

INCLUDE FARR_BLOCKED_SCENARIO OBJECT DOKU ID TX

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_PROCESS_CHECK013 - Performance obligation &1 has a right of return. This is not supported ?

  The SAP error message FARR_PROCESS_CHECK013 indicates that there is an issue related to performance obligations in the context of revenue recognition, specifically concerning a right of return. This error typically arises in the SAP S/4HANA system when dealing with contracts that include performance obligations that allow customers to return products.
  Cause:
  The error occurs because the system does not support the processing of performance obligations that have a right of return. In the context of revenue recognition, a right of return can complicate the recognition of revenue, as it introduces uncertainty regarding whether the revenue can be recognized at the time of sale.
  Solution:
  To resolve this error, consider the following steps:
  
  
  Review the Performance Obligation: Check the details of the performance obligation that is causing the error. Ensure that it is correctly defined in the system and that the right of return is appropriately configured.
  
  
  Adjust Contract Terms: If the performance obligation includes a right of return, you may need to adjust the contract terms or the configuration of the performance obligation to align with SAP's capabilities. This may involve:
  
  Removing the right of return if it is not necessary.
  Modifying the performance obligation to handle returns in a way that is supported by the system.
  
  
  
  Consult SAP Documentation: Review the relevant SAP documentation regarding revenue recognition and performance obligations. This can provide insights into how to configure your system to handle such scenarios.
  
  
  Check for Updates or Notes: Look for any SAP Notes or updates that may address this specific error. SAP frequently releases updates that may include fixes or enhancements related to revenue recognition and performance obligations.
  
  
  Engage with SAP Support: If the issue persists, consider reaching out to SAP Support for assistance. They can provide guidance specific to your system configuration and help troubleshoot the issue.
  
  
  Related Information:
  
  Revenue Recognition: Understand the principles of revenue recognition under IFRS 15 or ASC 606, which may impact how performance obligations are defined and managed in your SAP system.
  Configuration Settings: Familiarize yourself with the configuration settings in SAP related to revenue recognition, performance obligations, and rights of return.
  Testing: After making changes, conduct thorough testing to ensure that the performance obligations are processed correctly and that revenue is recognized appropriately.
  
  By following these steps, you should be able to address the error and ensure that your SAP system can handle performance obligations with rights of return effectively.