How To Fix FARR_CONTRACT_MAIN164 - Events cannot occur on compound performance obligation &1

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 164

• Message text: Events cannot occur on compound performance obligation &1

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_MAIN164 - Events cannot occur on compound performance obligation &1 ?

  The SAP error message FARR_CONTRACT_MAIN164 indicates that there is an issue related to events occurring on a compound performance obligation in the context of SAP's Revenue Accounting and Reporting (RAR) module. This error typically arises when there is an attempt to post an event (like revenue recognition or billing) on a performance obligation that is part of a compound arrangement, which is not allowed under certain conditions.
  Cause:
  
  Compound Performance Obligation: The error occurs because the performance obligation you are trying to post an event for is part of a compound performance obligation. In SAP RAR, compound performance obligations are treated as a single unit for revenue recognition purposes.
  Event Posting Restrictions: Events cannot be posted directly to individual performance obligations that are part of a compound arrangement. Instead, events must be posted to the compound performance obligation as a whole.
  Configuration Issues: There may be configuration settings in the RAR module that are not aligned with the business processes or the way performance obligations are structured.
  
  Solution:
  
  Post Events to the Compound Performance Obligation: Ensure that you are posting events to the compound performance obligation rather than to individual components. You may need to identify the correct compound performance obligation and perform the event posting there.
  Review Performance Obligation Structure: Check the structure of your performance obligations in the system. Make sure that the obligations are correctly defined and that you understand which obligations are part of a compound arrangement.
  Consult Documentation: Refer to SAP documentation or help resources related to Revenue Accounting and Reporting to understand the rules governing compound performance obligations and event postings.
  Configuration Review: If the issue persists, review the configuration settings in the RAR module. You may need to consult with your SAP functional consultant or support team to ensure that the settings are appropriate for your business processes.
  Testing: After making any changes, conduct thorough testing to ensure that the issue is resolved and that events can be posted correctly.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on handling compound performance obligations.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have found.
  Training and Documentation: Consider training sessions or documentation on SAP RAR to better understand how to manage performance obligations and events effectively.
  
  If the problem continues after following these steps, it may be beneficial to reach out to SAP support for further assistance.