How To Fix FARR_CONTRACT_MAIN124 - Non-distinct performance obligation &1 cannot be time-based

FARR_CONTRACT_MAIN124 - Overview

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 124

• Message text: Non-distinct performance obligation &1 cannot be time-based

Self-Explanatory Message

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FARR_CONTRACT_MAIN124 - Details

• The SAP error message FARR_CONTRACT_MAIN124 indicates that there is a problem with the performance obligations defined in a contract, specifically that a non-distinct performance obligation cannot be treated as time-based. This error typically arises in the context of revenue recognition and contract management within SAP, particularly when using the SAP S/4HANA system with the Revenue Accounting and Reporting (RAR) module.
  
  Cause:
  
  
  Non-Distinct Performance Obligation: The error suggests that the performance obligation in question is classified as non-distinct. Non-distinct performance obligations are those that cannot be separately identified from other obligations in the contract. This means that they are not capable of being fulfilled independently.
  
  
  Time-Based Recognition: The system is trying to apply time-based revenue recognition to a performance obligation that is not distinct. Time-based recognition typically requires that the performance obligation can be fulfilled independently over time, which is not the case here.
  
  
  
  Solution:
  
  
  Review Performance Obligations: Check the performance obligations defined in the contract.