Cancel POBs - For Classic Contract Management
Application component: Revenue Accounting
App type: SAP GUI
Description:  After sales orders have been sent to Revenue Accounting and revenue accounting contracts have been created, you may need to cancel the contracts for certain reasons. As soon as the cancellation is performed in the sender components, a finalization date will be sent to Revenue Accounting as a sign to terminate the performance obligations. In the meantime, the operational document is locked with the Rejection status and is therefore canceled. In such a case, only processable fulfilled revenue accounting items and processable invoice revenue accounting items can be processed and sent to Revenue Accounting. Note The cancellation is performed at performance obligation level. Only after all performance obligations have been canceled can the revenue accounting contract be canceled. Example There is a sales order as follows:   Contractual Price   Invoiced Amount   Recognized Amount   Fulfillment (Percentage)   Unbilled Receivable      EUR 1,000   EUR 900   EUR 980   98%   EUR 80   For some reasons, you decide to cancel this order, so you perform the cancellation in Sales and Distribution (SD) and SD sends a finalization date to Revenue Accounting. In Revenue Accounting, the contract is adjusted as follows:  The contractual price is set to the invoiced amount. The invoiced amount is the total amount in billing, credit memo, and debit memo documents that are posted. The amounts in the documents with future posting dates are also included in the calculation.   The fulfillment is set to 100%.   The unbilled receivables amount is set to 0.     Contractual Price   Invoiced Amount   Recognized Amount   Fulfillment (Percentage)   Unbilled Receivable   Finalization Date      EUR 900   EUR 900   EUR 900   100%   EUR 0   The day you perform the cancellation.    
Key features:  Complete performance obligations after cancellation Revenue Accounting searches for canceled performance obligations. Usually these performance obligations have a finalization date and their statuses are set to In process. Then the system changes their statuses to Completed if the finalization date is earlier than the date when the search takes place. In the meantime, the cumulative amount and quantity for these performance obligations are adjusted according to the invoiced quantity and processed amount. Future cancellations  If you specify a current or past finalization date, the cancellation is processed immediately. However, if you specify a future finalization date, you need to run program FARR_POB_CANCELLATION when the date comes. Therefore, we suggest that you run this program regularly if you have specified a future finalization date. Canceling time-based performance obligations For a time-based performance obligation,   if the finalization date is in the past and the date is earlier than the start date, then the end date will be changed to the start date; if the date is later than the start date, then the finalization date will be set as the end date.   if the finalization date is in the future and the finalization date is earlier than the end date, the end date will be set to the finalization date. At the same time, the deferral method of the time-based performance obligation will be set to method 1 Linear Distribution, Day-Specific, 365/366 Basis no matter what it was originally.   Canceling linked performance obligations When a leading performance obligation is canceled, its linked performance obligation will also be canceled. Canceling a performance obligation in the pending review worklists Performance obligations with a Pending Reviewstatus go to the pending review worklists, either the worklist for regular monitoring, the worklist for contracts with errors, or the worklist for contracts with conflicts. When these performance obligations are canceled, the cancellation is not performed immediately. Even when they have been removed from the pending review worklists, the system does not automatically perform the cancellation. You need to run program FARR_POB_CANCELLATION manually. Changing the finalization date You can set or change the finalization date using method ORDER_DATA_TO_ARL of BAdI FARRIC_BADI_ORDER. Reversing a cancellation You can recover contracts that were canceled in the past. After you have reversed a cancellation in the operational system, Revenue Accounting removes the finalization date and changes the status of the performance obligations back to In process. The cumulative amount and quantity is also adjusted accordingly. 
Business roles: External Auditor| Revenue Accountant
External Auditor : 
Reviews the accounts of organizations to ensure the accuracy and completeness of their financial records.

Revenue Accountant : 
Displays and edits revenue contracts relevant information, check and reconcile postings for revenue contracts.