How To Fix FARR_RAI645 - New performance obligation &1 created for contract &2

FARR_RAI645 - Overview

• Message type: E = Error

• Message class: FARR_RAI - Revenue Accounting Item

• Message number: 645

• Message text: New performance obligation &1 created for contract &2

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_RAI645 - New performance obligation &1 created for contract &2 ?

  The SAP error message FARR_RAI645 indicates that a new performance obligation has been created for a specific contract. This message typically arises in the context of revenue recognition and contract management, particularly when dealing with the new revenue recognition standards (like IFRS 15 or ASC 606).
  
  Cause:
  
  New Performance Obligation Creation: The system has identified that a new performance obligation needs to be created for the specified contract. This can happen due to changes in the contract terms, additional services or goods being added, or modifications in the existing performance obligations.
  Contract Modifications: If there are changes in the contract that affect the performance obligations, such as adding new deliverables or changing the scope of existing ones, the system will trigger this message.
  Revenue Recognition Rules: The error may also be related to how the revenue recognition rules are set up in the system, which may require the creation of new performance obligations based