How To Fix FARR_CONTRACT_MAIN078 - Changing perf. oblig. &1 from compound to non-distinct is not permitted

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 078

• Message text: Changing perf. oblig. &1 from compound to non-distinct is not permitted

What causes this issue?

You have attempted to change a performance obligation from compound to
non-distinct. However, this change is not allowed for leading
performance obligations.

System Response

The operation is terminated.

How to fix this error?

To change a performance obligation from compound to non-distinct, you
must make sure that the performance obligation does not have linked
performance obligations attached to it.

Procedure for System Administrators

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

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_MAIN078 - Changing perf. oblig. &1 from compound to non-distinct is not permitted ?

  The SAP error message FARR_CONTRACT_MAIN078 indicates that there is an issue with changing a performance obligation from a compound to a non-distinct status in the context of contract management, particularly in the area of revenue recognition and performance obligations.
  Cause:
  This error typically arises when you attempt to modify a performance obligation that is currently classified as compound (meaning it is linked to multiple distinct goods or services) to a non-distinct status (which would imply it is a standalone obligation). The system does not allow this change because it could lead to inconsistencies in revenue recognition and reporting.
  Solution:
  To resolve this error, consider the following steps:
  
  
  Review the Performance Obligation: Check the details of the performance obligation you are trying to change. Ensure that the obligation is indeed eligible for the change you are attempting to make.
  
  
  Check Dependencies: If the performance obligation is part of a compound obligation, you may need to first disassociate it from any related obligations before changing its status.
  
  
  Consult Documentation: Refer to SAP documentation or your organization's guidelines on performance obligations to understand the rules governing changes between compound and non-distinct obligations.
  
  
  Use Transaction Codes: Utilize relevant transaction codes (like FARR for contract management) to navigate to the performance obligation and review its settings.
  
  
  Seek Help from SAP Support: If you are unable to resolve the issue, consider reaching out to SAP support or your internal SAP team for assistance. They may provide insights specific to your configuration or version of SAP.
  
  
  Testing in a Sandbox Environment: If possible, replicate the scenario in a sandbox environment to test different approaches without affecting production data.
  
  
  Related Information:
  
  Performance Obligations: Understand the concept of performance obligations in the context of revenue recognition, especially under IFRS 15 or ASC 606 standards.
  Compound vs. Non-Distinct: Familiarize yourself with the definitions and implications of compound and non-distinct performance obligations.
  SAP Notes: Check for any relevant SAP Notes that might address this specific error or provide additional context or solutions.
  
  By following these steps, you should be able to address the error and understand the implications of changing performance obligations within your SAP system.