How To Fix FARR_PROCESS_CHECK039 - Provide a freeze date for the 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: 039

• Message text: Provide a freeze date for the performance obligation &1

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_PROCESS_CHECK039 - Provide a freeze date for the performance obligation &1 ?

  The SAP error message FARR_PROCESS_CHECK039 indicates that a freeze date must be provided for the performance obligation specified in the message. This error typically arises in the context of revenue recognition and performance obligations in SAP S/4HANA or SAP ERP systems, particularly when dealing with the SAP Revenue Accounting and Reporting (RAR) module.
  Cause:
  The error occurs when:
  
  A performance obligation is being processed, but no freeze date has been set for it.
  The freeze date is necessary to ensure that the revenue recognition process is stable and that no changes can be made to the performance obligation after this date.
  The system requires a freeze date to determine the point in time when the performance obligation is considered complete for accounting purposes.
  
  Solution:
  To resolve this error, you need to provide a freeze date for the specified performance obligation. Here are the steps you can take:
  
  
  Access the Performance Obligation:
  
  Navigate to the relevant transaction in SAP where you can view or edit performance obligations (e.g., transaction code FARR or through the RAR workbench).
  
  
  
  Set the Freeze Date:
  
  Locate the performance obligation that is causing the error.
  Find the field for the freeze date and enter an appropriate date. This date should reflect when you want to "freeze" the performance obligation for revenue recognition purposes.
  
  
  
  Save Changes:
  
  After entering the freeze date, save your changes to the performance obligation.
  
  
  
  Reprocess the Transaction:
  
  Once the freeze date is set, reprocess the transaction that triggered the error to see if the issue is resolved.
  
  
  
  Related Information:
  
  Performance Obligation: In the context of revenue recognition, a performance obligation is a promise in a contract to transfer a good or service to a customer. The freeze date is critical for determining when revenue can be recognized.
  Revenue Recognition: This is the accounting principle that outlines the specific conditions under which income becomes recognized as revenue. The freeze date helps ensure compliance with these principles.
  SAP RAR Documentation: For more detailed information, refer to the SAP documentation on Revenue Accounting and Reporting, which provides guidelines on managing performance obligations and related settings.
  
  If the issue persists after following these steps, it may be necessary to consult with your SAP support team or refer to SAP Notes for any specific patches or updates related to this error message.