How To Fix FARR_CONTR_LIFECYCLE123 - The liability account &1 of performance obligation &2 cannot be changed.

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTR_LIFECYCLE - Message from Contract Lifecyle (RAR 2.0 Object Model)

• Message number: 123

• Message text: The liability account &1 of performance obligation &2 cannot be changed.

What causes this issue?

The liability account of the performance obligation cannot be changed
because the performance obligation has been posted to FI/CO-PA.

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?

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_CONTR_LIFECYCLE123 - The liability account &1 of performance obligation &2 cannot be changed. ?

  The SAP error message FARR_CONTR_LIFECYCLE123 indicates that there is an issue with changing the liability account associated with a performance obligation in the context of contract accounting or revenue recognition. This error typically arises in the SAP S/4HANA or SAP ERP systems when dealing with contract management and revenue accounting.
  Cause:
  The error message is triggered when an attempt is made to change the liability account for a performance obligation that is already in a certain lifecycle state. The lifecycle of a performance obligation may include various statuses such as "Active," "Completed," or "Closed." If the performance obligation is in a state that does not allow changes to its liability account (for example, if it has already been recognized or settled), the system will prevent the change and display this error message.
  Solution:
  To resolve this error, consider the following steps:
  
  
  Check the Lifecycle Status: Verify the current status of the performance obligation. If it is in a state that does not allow changes (like "Completed" or "Closed"), you will need to take appropriate actions based on your business processes. 
  
  
  Re-evaluate the Need for Change: Determine if changing the liability account is necessary. If it is not critical, you may choose to leave it as is.
  
  
  Adjustments: If a change is necessary, you may need to reverse or adjust the performance obligation to a state that allows changes. This could involve:
  
  Reversing the revenue recognition.
  Making necessary adjustments to the contract or performance obligation.
  
  
  
  Consult Documentation: Review SAP documentation or notes related to contract accounting and performance obligations for any specific guidelines or restrictions regarding changes to liability accounts.
  
  
  Contact Support: If you are unable to resolve the issue, consider reaching out to your SAP support team or consulting with SAP experts who can provide guidance based on your specific configuration and business processes.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional context.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FARR (for contract accounting) and FSP0 (for managing performance obligations).
  Configuration Settings: Review the configuration settings in your SAP system related to revenue recognition and performance obligations to ensure they align with your business requirements.
  
  By following these steps, you should be able to address the error and understand the implications of changing liability accounts in your SAP system.