How To Fix FARR_PROCESS_CHECK071 - Performance obligation &1 for cost of acquisition must be time-based

SAP Error Message - Details

• Message type: E = Error

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

• Message number: 071

• Message text: Performance obligation &1 for cost of acquisition must be time-based

What causes this issue?

The performance obligation for cost of acquisition has an unsupported
fulfillment type.

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: The fulfillment type must be
<ZK>time-based</>.

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_CHECK071 - Performance obligation &1 for cost of acquisition must be time-based ?

  The SAP error message FARR_PROCESS_CHECK071 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 when the system expects a time-based allocation for the performance obligation, but the data provided does not meet this requirement.
  Cause:
  
  Incorrect Configuration: The performance obligation may not be configured correctly in the system, leading to a mismatch in expected time-based recognition.
  Missing Time-Based Data: The relevant data for the performance obligation may be missing or incorrectly set up, such as the start and end dates for the performance obligation.
  Inconsistent Data: There may be inconsistencies in the data related to the cost of acquisition and the performance obligation, such as the absence of a time-based allocation method.
  Business Rules: The business rules defined in the system may require that certain performance obligations must be recognized over time, and if this is not adhered to, the error will occur.
  
  Solution:
  
  Check Configuration: Review the configuration of the performance obligation in the SAP system. Ensure that it is set up to allow for time-based recognition.
  Verify Data: Ensure that all necessary data related to the performance obligation is correctly entered, including start and end dates, and that it aligns with the cost of acquisition.
  Adjust Allocation Method: If the performance obligation is supposed to be time-based, ensure that the allocation method is set accordingly in the system.
  Consult Documentation: Refer to SAP documentation or guidelines related to revenue recognition and performance obligations to ensure compliance with the required setup.
  Test with Sample Data: If possible, create a test scenario with sample data to see if the error persists. This can help isolate the issue.
  Engage SAP Support: If the issue cannot be resolved internally, consider reaching out to SAP support for assistance, providing them with detailed information about the error and the context in which it occurs.
  
  Related Information:
  
  SAP Revenue Accounting and Reporting (RAR): This module is often where such errors occur, as it deals with performance obligations and revenue recognition.
  Time-Based Recognition: Understand the principles of time-based revenue recognition as per accounting standards (e.g., IFRS 15 or ASC 606) to ensure compliance.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that can help you navigate to the configuration and data entry screens related to performance obligations (e.g., transaction codes for RAR configuration).
  
  By addressing the configuration and data issues related to performance obligations, you should be able to resolve the error message FARR_PROCESS_CHECK071 effectively.