1. SAP Glossary
  2. Revenue Accounting
  3. additional performance obligation


What is additional performance obligation in SAP FI-RA - Revenue Accounting?


SAP Term: additional performance obligation

  • Component: FI-RA

  • Component Name: Revenue Accounting

  • Description: Performance obligation that does not correspond to an operational contract item but that has been created in addition to a leading performance obligation.


Smart SAP Assistant

  • Key Concepts: 
    Additional performance obligation is a term used in the FI-RA Revenue Accounting component of SAP. It refers to a situation where a customer has requested additional services or goods from the seller, and the seller has agreed to provide them. The additional performance obligation is the obligation of the seller to provide these additional services or goods. 
    
    How to use it: 
    In order to use this term, the seller must first agree to provide the additional services or goods requested by the customer. Once this agreement is made, the seller must then fulfill their additional performance obligation by providing the requested services or goods. 
    
    Tips & Tricks: 
    When agreeing to provide additional services or goods, it is important for the seller to ensure that they are able to fulfill their additional performance obligation. This means that they should make sure that they have the resources and capacity to provide what was requested. 
    
    Related Information: 
    The concept of additional performance obligation is closely related to other terms such as contract liability and revenue recognition. It is important for sellers to understand how these terms interact in order to ensure that they are able to properly account for revenue and fulfill their obligations.
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