How To Fix FARR_CONTRACT_MAIN085 - Changing perf. oblig. &1 from compound to distinct is not permitted

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 085

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

What causes this issue?

You have attempted to change a performance obligation from compound to
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 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_MAIN085 - Changing perf. oblig. &1 from compound to distinct is not permitted ?

  The SAP error message FARR_CONTRACT_MAIN085 indicates that there is an issue with changing the performance obligation from a compound to a distinct status in the context of contract management, particularly in the area of revenue recognition.
  Cause:
  This error typically occurs when you attempt to change the status of a performance obligation that is currently classified as "compound" to "distinct." In SAP, a compound performance obligation is one that is bundled with other obligations, while a distinct performance obligation is treated separately. 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 it is appropriate to change its status from compound to distinct based on your business requirements.
  
  
  Check Dependencies: If the performance obligation is part of a larger contract or is linked to other obligations, you may need to first unlink or modify those dependencies before making the change.
  
  
  Consult Documentation: Refer to SAP documentation or your organization's guidelines on performance obligations to understand the implications of changing the status.
  
  
  Use Transaction Codes: If you are using specific transaction codes to manage performance obligations, ensure that you are following the correct procedures. You may need to use transaction codes like FARR or FSP0 to manage contracts and performance obligations.
  
  
  Contact Support: If you are unable to resolve the issue, consider reaching out to your SAP support team or consulting with an SAP expert 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.
  Revenue Recognition: Familiarize yourself with the principles of revenue recognition as they apply to your organization, especially if you are using the SAP Revenue Accounting and Reporting (RAR) module.
  Training and Documentation: Ensure that users involved in contract management are trained on the implications of performance obligations and the processes for managing them in SAP.
  
  By following these steps, you should be able to address the error and understand the underlying reasons for the restriction on changing performance obligations in SAP.