How To Fix FARR_CONTRACT_MAIN072 - Marking performance obligation &1 as non-distinct is not permitted

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 072

• Message text: Marking performance obligation &1 as non-distinct is not permitted

What causes this issue?

You have attempted to mark a performance obligation as non-distinct.
However, this performance obligation is the higher-level performance
obligation of performance obligation &V2&.

System Response

The operation is terminated.

How to fix this error?

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

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_CONTRACT_MAIN072 - Marking performance obligation &1 as non-distinct is not permitted ?

  The SAP error message FARR_CONTRACT_MAIN072 indicates that there is an issue with marking a performance obligation as non-distinct in the context of revenue recognition, particularly when dealing with contracts in SAP S/4HANA or SAP Revenue Accounting and Reporting (RAR). This error typically arises when the system detects that the performance obligation you are trying to modify does not meet the criteria for being marked as non-distinct.
  Cause:
  
  Performance Obligation Criteria: In SAP, performance obligations must meet specific criteria to be classified as distinct. If the system determines that the obligation is distinct (i.e., it can be separately identified and is capable of being distinct), it cannot be marked as non-distinct.
  Contract Configuration: The configuration of the contract or the way the performance obligations are defined may not align with the requirements for marking them as non-distinct.
  Data Integrity Issues: There may be inconsistencies or errors in the data related to the performance obligations, such as missing or incorrect information.
  
  Solution:
  
  Review Performance Obligation: Check the characteristics of the performance obligation you are trying to modify. Ensure that it meets the criteria for being distinct. If it is indeed distinct, you should not attempt to mark it as non-distinct.
  Contract Configuration: Review the contract configuration and ensure that the performance obligations are set up correctly. You may need to adjust the configuration to align with the business requirements.
  Consult Documentation: Refer to SAP documentation or guidelines on revenue recognition and performance obligations to understand the criteria for distinct and non-distinct obligations.
  Data Validation: Validate the data associated with the performance obligation. Ensure that all required fields are filled out correctly and that there are no inconsistencies.
  SAP Notes and Support: Check for any relevant SAP Notes that may address this specific error. If the issue persists, consider reaching out to SAP support for further assistance.
  
  Related Information:
  
  Revenue Recognition Standards: Familiarize yourself with the relevant accounting standards (e.g., IFRS 15 or ASC 606) that govern revenue recognition and the treatment of performance obligations.
  SAP RAR Configuration: Understanding the configuration settings in SAP RAR can help in troubleshooting issues related to performance obligations.
  Transaction Codes: Familiarize yourself with relevant transaction codes in SAP that pertain to contract management and revenue recognition, such as FARR_CONTRACT for contract management.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.