How To Fix FARR_PROCESS_CHECK090 - Billing element performance obligation &1 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: 090

• Message text: Billing element performance obligation &1 must be distinct

What causes this issue?

The billing element performance obligation is not 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 billing
element performance obligation: It must be 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_CHECK090 - Billing element performance obligation &1 must be distinct ?

  The SAP error message FARR_PROCESS_CHECK090 indicates that there is an issue with the billing element related to performance obligations in the context of revenue recognition. Specifically, the error message states that the billing element must be distinct, which means that the performance obligations associated with the billing element are not properly defined or are overlapping in a way that violates the distinctiveness requirement.
  Cause:
  
  Overlapping Performance Obligations: The billing element may be associated with multiple performance obligations that are not distinct from one another. This can occur if the same goods or services are being billed under different performance obligations.
  Incorrect Configuration: The configuration of the revenue recognition settings in SAP may not be set up correctly, leading to conflicts in how performance obligations are defined.
  Data Entry Errors: There may be errors in the data entry for the billing elements or performance obligations, causing them to be treated as non-distinct.
  
  Solution:
  
  Review Performance Obligations: Check the performance obligations associated with the billing element. Ensure that each performance obligation is distinct and does not overlap with others. You may need to redefine or separate the obligations.
  Adjust Billing Elements: If necessary, adjust the billing elements to ensure that they correspond correctly to the distinct performance obligations.
  Configuration Check: Review the configuration settings in the SAP system related to revenue recognition and performance obligations. Ensure that they are set up according to the business requirements and accounting standards.
  Data Validation: Validate the data entries for the billing elements and performance obligations to ensure there are no discrepancies or errors.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidelines on how to define and manage performance obligations and billing elements.
  
  Related Information:
  
  SAP Revenue Recognition: Understanding the principles of revenue recognition and how performance obligations are defined is crucial. Familiarize yourself with the relevant accounting standards (e.g., IFRS 15 or ASC 606) that govern revenue recognition.
  SAP Notes and Support: Check SAP Notes for any known issues or patches related to this error message. SAP Support may also provide additional insights or solutions.
  Testing in a Sandbox Environment: If possible, replicate the issue in a sandbox environment to test potential solutions without affecting production data.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the FARR_PROCESS_CHECK090 error in SAP.