How To Fix FARR_CONTRACT_MAIN074 - Marking performance obligation &1 as compound is not permitted

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 074

• Message text: Marking performance obligation &1 as compound is not permitted

What causes this issue?

You have attempted to mark performance obligation &V1& as compound.
However, this performance obligation is the higher-level performance
obligation of another compound performance obligation &V2&.

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_CONTRACT_MAIN074 - Marking performance obligation &1 as compound is not permitted ?

  The SAP error message FARR_CONTRACT_MAIN074 indicates that there is an issue with marking a performance obligation as compound in the context of contract accounting or revenue recognition. This error typically arises when the system detects that the performance obligation you are trying to mark as compound does not meet the necessary criteria.
  Cause:
  
  Incompatible Performance Obligation: The performance obligation you are trying to mark as compound may not be compatible with the rules defined in the system. For example, it may already be linked to other obligations or may not meet the criteria for being a compound obligation.
  Configuration Issues: There may be configuration settings in the SAP system that restrict certain performance obligations from being marked as compound.
  Data Integrity Issues: There could be inconsistencies or missing data in the contract or performance obligation that prevent it from being marked as compound.
  
  Solution:
  
  Check Performance Obligation Criteria: Review the characteristics of the performance obligation you are trying to mark as compound. Ensure that it meets the necessary criteria defined in your SAP configuration.
  Review Contract Configuration: Check the configuration settings related to performance obligations in your SAP system. Ensure that the settings allow for the marking of obligations as compound where appropriate.
  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.
  Consult Documentation: Refer to SAP documentation or help resources for specific guidelines on marking performance obligations as compound. This may provide insights into any additional requirements or restrictions.
  Contact SAP Support: If the issue persists after checking the above points, consider reaching out to SAP support for further assistance. They may provide insights specific to your system configuration or any known issues.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error message or provide updates related to performance obligations and contract accounting.
  Transaction Codes: Familiarize yourself with relevant transaction codes such as FARR (Contract Accounting) and FSP0 (Manage Performance Obligations) to navigate and troubleshoot within the system.
  Training and Documentation: Ensure that users involved in contract management and revenue recognition are trained on the relevant processes and understand the implications of marking performance obligations as compound.
  
  By following these steps, you should be able to identify the cause of the error and implement a solution to resolve it.