How To Fix FARR_PROCESS_CHECK023 - Main price condition missing for performance obligation &1

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 023

• Message text: Main price condition missing for performance obligation &1

What causes this issue?

This performance obligation is not a linked performance obligation, and
must therefore have a price.

System Response

The system can not process this revenue accounting item.

How to fix this error?

Add a non-statistical price condition that is marked as main price.

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_CHECK023 - Main price condition missing for performance obligation &1 ?

  The SAP error message FARR_PROCESS_CHECK023 indicates that there is a missing main price condition for a performance obligation in the context of revenue recognition. This error typically arises in the SAP S/4HANA system when dealing with contract management and revenue accounting, particularly in the context of the new revenue recognition standards (IFRS 15/ASC 606).
  Cause:
  The error occurs when:
  
  A performance obligation is defined in a contract, but there is no corresponding main price condition (such as a sales price or discount) associated with it.
  The system expects a price condition to be present for the performance obligation to calculate revenue correctly.
  There may be configuration issues in the pricing procedure or missing entries in the condition records.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check the Performance Obligation:
  
  Navigate to the contract or sales order associated with the performance obligation.
  Ensure that the performance obligation is correctly defined and that it has the necessary attributes.
  
  
  
  Verify Pricing Conditions:
  
  Go to the pricing conditions in the contract or sales order.
  Ensure that there is a main price condition (e.g., a price or discount) defined for the performance obligation.
  If it is missing, you may need to add the appropriate pricing condition.
  
  
  
  Review Pricing Procedure:
  
  Check the pricing procedure assigned to the sales document or contract.
  Ensure that the pricing procedure includes the necessary condition types for revenue recognition.
  
  
  
  Maintain Condition Records:
  
  If the main price condition is not maintained, you may need to create or update the condition records for the relevant condition type.
  Use transaction codes like VK11 (Create Condition) or VK12 (Change Condition) to manage condition records.
  
  
  
  Consult Configuration:
  
  If you are unsure about the configuration, consult with your SAP configuration team to ensure that the pricing procedure and condition types are set up correctly for revenue recognition.
  
  
  
  Test the Changes:
  
  After making the necessary adjustments, test the changes by processing the contract or sales order again to see if the error persists.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance.
  Documentation: Review SAP documentation on revenue recognition and pricing procedures to ensure compliance with accounting standards.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as VA01 (Create Sales Order), VA02 (Change Sales Order), and FARR (Revenue Accounting and Reporting) for managing contracts and performance obligations.
  
  If the issue persists after following these steps, it may be beneficial to engage with SAP support or your internal SAP team for further assistance.