How To Fix FARR_PROCESS_CHECK069 - Performance obligation &1 for cost of acquisition must be distinct

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 069

• Message text: Performance obligation &1 for cost of acquisition must be distinct

What causes this issue?

The performance obligation for cost of acquisition is non-distinct. This
is not supported.

System Response

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

How to fix this error?

Adjust the settings for the derivation of the attributes of the cost of
acquisition performance obligation: It must be set up as distinct.

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_PROCESS_CHECK069 - Performance obligation &1 for cost of acquisition must be distinct ?

  The SAP error message FARR_PROCESS_CHECK069 indicates that there is an issue with the performance obligation related to the cost of acquisition in the context of revenue recognition. This error typically arises in the SAP Revenue Accounting and Reporting (RAR) module when the system detects that the performance obligation specified is not distinct, which is a requirement under IFRS 15 and ASC 606.
  Cause:
  The error occurs when:
  
  Non-Distinct Performance Obligation: The performance obligation associated with the cost of acquisition is not considered distinct. In revenue recognition, a performance obligation is distinct if the customer can benefit from the good or service on its own or together with other readily available resources.
  Incorrect Configuration: There may be issues with the configuration of the performance obligations in the system, leading to the system not recognizing them as distinct.
  Data Entry Errors: There could be errors in the data entered for the performance obligations, such as incorrect assignment of costs or misconfiguration of the related items.
  
  Solution:
  To resolve the error, you can take the following steps:
  
  
  Review Performance Obligations:
  
  Check the performance obligations defined in the system. Ensure that they meet the criteria for being distinct. This includes verifying that the customer can benefit from the good or service on its own or with other readily available resources.
  
  
  
  Adjust Configuration:
  
  If the performance obligations are not set up correctly, you may need to adjust the configuration in the RAR module. This may involve redefining the performance obligations or adjusting the related costs.
  
  
  
  Data Validation:
  
  Validate the data entered for the performance obligations. Ensure that all relevant fields are filled out correctly and that there are no discrepancies in the cost assignments.
  
  
  
  Consult Documentation:
  
  Refer to SAP documentation or guidelines related to revenue recognition and performance obligations to ensure compliance with accounting standards.
  
  
  
  Testing:
  
  After making adjustments, perform tests to ensure that the error no longer occurs and that the performance obligations are recognized correctly.
  
  
  
  Seek Support:
  
  If the issue persists, consider reaching out to SAP support or consulting with an SAP expert who specializes in the RAR module for further assistance.
  
  
  
  Related Information:
  
  IFRS 15 / ASC 606 Compliance: Understanding the principles of revenue recognition under these standards is crucial for correctly defining performance obligations.
  SAP RAR Configuration: Familiarity with the configuration settings in the SAP RAR module can help in troubleshooting and resolving issues related to performance obligations.
  Documentation and Training: Ensure that users involved in revenue recognition processes are trained and have access to relevant documentation to minimize errors.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.