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

SAP Term: performance obligation type

• Component: FI-RA

• Component Name: Revenue Accounting

• Description: A grouping of performance obligations POBs that typically have the same attributes concerning revenue accounting. All POBs must be assigned to a POB type. A POB type delivers default values for attributes that control how the POB is handled in , such as the fulfillment type and how transaction prices are allocated.

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• Key Concepts: 
  Performance obligation type is a term used in SAP FI-RA Revenue Accounting. It is a classification of revenue contracts that helps to determine the accounting treatment for revenue recognition. It is used to identify the type of performance obligation that exists in a contract, such as a service, a product, or a combination of both. 
  
  How to use it: 
  In SAP FI-RA Revenue Accounting, performance obligation type is used to determine the accounting treatment for revenue recognition. The performance obligation type is assigned to each contract and is used to identify the type of performance obligation that exists in the contract. This information is then used to determine the appropriate accounting treatment for revenue recognition. 
  
  Tips & Tricks: 
  When assigning a performance obligation type to a contract, it is important to ensure that the correct type is selected. This will ensure that the correct accounting treatment is applied for revenue recognition. 
  
  Related Information: 
  For more information on performance obligation type and how it is used in SAP FI-RA Revenue Accounting, please refer to the SAP Help documentation.