How To Fix FARR_CONTRACT_MAIN073 - 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: 073

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

What causes this issue?

You have attempted to mark performance obligation &V1& as non-distinct.
However, performance obligation &V2&, which has the same higher-level
performance obligation, is compound.

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_MAIN073 - Marking performance obligation &1 as non-distinct is not permitted ?

  The SAP error message FARR_CONTRACT_MAIN073 indicates that there is an issue with marking a performance obligation as non-distinct in the context of revenue recognition. This error typically arises in the SAP S/4HANA system when dealing with contracts and performance obligations under the new revenue recognition standards (IFRS 15 / ASC 606).
  Cause:
  The error occurs when the system attempts to mark a performance obligation as non-distinct, but this action is not permitted due to the following reasons:
  
  
  Contract Structure: The performance obligation may be part of a contract that does not allow for non-distinct obligations. This could be due to the nature of the goods or services being provided.
  
  
  Configuration Settings: The configuration settings in the SAP system may not allow for certain types of performance obligations to be marked as non-distinct.
  
  
  Business Rules: There may be specific business rules or policies in place that dictate how performance obligations should be treated, which could lead to this error if not adhered to.
  
  
  Solution:
  To resolve the error, consider the following steps:
  
  
  Review Contract Details: Check the details of the contract and the performance obligations involved. Ensure that the obligations are correctly defined and that they meet the criteria for being distinct.
  
  
  Check Configuration: Review the configuration settings in the SAP system related to revenue recognition and performance obligations. Ensure that they are set up correctly according to your organization's policies and the applicable accounting standards.
  
  
  Consult Documentation: Refer to SAP documentation or notes related to revenue recognition and performance obligations. This may provide insights into the specific conditions under which performance obligations can be marked as distinct or non-distinct.
  
  
  Engage with SAP Support: If the issue persists, consider reaching out to SAP support for assistance. They can provide guidance based on the specific version of SAP you are using and any relevant patches or updates.
  
  
  Training and Awareness: Ensure that the team handling contracts and revenue recognition is trained on the new standards and the implications for performance obligations. This can help prevent similar issues in the future.
  
  
  Related Information:
  
  Revenue Recognition Standards: Familiarize yourself with IFRS 15 and ASC 606, as these standards govern how revenue is recognized and how performance obligations are defined.
  SAP Notes and Knowledge Base: Check SAP's support portal for any notes related to FARR_CONTRACT_MAIN073 or similar issues. This can provide additional context or solutions that have been documented by SAP.
  Community Forums: Engage with SAP community forums or user groups where similar issues may have been discussed. Other users may have encountered the same error and can share their solutions.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.