How To Fix FARR_CONTRACT_MAIN195 - Events cannot occur on performance obligation &1

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 195

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

What causes this issue?

When events have occurred on a performance obligation, another event can
only occur on performance obligations at the same level.
<EX>&Example&</>
Suppose there is BOM structure containing 7 performance obligations at
three level. Performance obligations at each level are listed as
follows:
Level 1,,Performance Obligation 1
Level 2,,Performance Obligation 2 and 3
Level 3,,Performance Obligation 4, 5, 6 and 7

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

If events occurred on performance obligation 1, then another event
cannot occur on performance obligation 2, 3, 4, 5, 6, and 7.
If events occurred on performance obligation 2, then another event
cannot occur on performance obligation 1, 4, 5, 6, and 7. But the event
can occur on performance 3 which is at the same level as performance
obligation 2.
If events occurred on performance obligation 4, then another event
cannot occur on performance obligation 1, 2, and 3. But the event can
occur on 5, 6, and 7 which are at the same level as performance
obligation 4. ,,

System Response

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_MAIN195 - Events cannot occur on performance obligation &1 ?

  The SAP error message FARR_CONTRACT_MAIN195 indicates that there is an issue with the performance obligations associated with a contract in the SAP system, specifically that events cannot occur on the specified performance obligation. This error typically arises in the context of contract accounting or revenue recognition processes, particularly when dealing with performance obligations in SAP S/4HANA or SAP RAR (Revenue Accounting and Reporting).
  Cause:
  The error can be caused by several factors, including:
  
  Incorrect Status of Performance Obligation: The performance obligation may be in a status that does not allow for the event to be processed (e.g., it may be closed or completed).
  Missing or Incorrect Data: Required data for the performance obligation may be missing or incorrectly configured, preventing the event from being processed.
  Business Rules Violation: The event being processed may violate business rules defined in the system, such as timing or conditions for recognizing revenue.
  Configuration Issues: There may be issues with the configuration of the revenue recognition settings or contract management settings in the system.
  
  Solution:
  To resolve the error, you can take the following steps:
  
  
  Check Performance Obligation Status: Verify the status of the performance obligation in question. Ensure that it is in a state that allows for events to be processed (e.g., it should not be completed or closed).
  
  
  Review Event Data: Ensure that all required data for the event you are trying to process is complete and accurate. This includes checking for any missing fields or incorrect values.
  
  
  Consult Business Rules: Review the business rules related to revenue recognition and performance obligations to ensure that the event you are trying to process complies with these rules.
  
  
  Configuration Review: Check the configuration settings in the SAP system related to contract management and revenue recognition. Ensure that they are set up correctly and align with your business processes.
  
  
  Transaction Logs: Look at transaction logs or error logs for more detailed information about why the event cannot occur. This may provide additional context for troubleshooting.
  
  
  SAP Notes and Documentation: Search for relevant SAP Notes or documentation that may address this specific error message. SAP frequently updates its knowledge base with solutions to common issues.
  
  
  Consult with SAP Support: If the issue persists after checking the above points, consider reaching out to SAP Support for further assistance. They can provide more specific guidance based on your system configuration and the details of the error.
  
  
  Related Information:
  
  SAP S/4HANA: This error is often encountered in the context of SAP S/4HANA, particularly in modules related to contract management and revenue recognition.
  Revenue Recognition: Understanding the principles of revenue recognition and how they apply to performance obligations is crucial for resolving this error.
  Performance Obligations: Familiarize yourself with the concept of performance obligations in the context of contracts and how they are managed within SAP.
  
  By following these steps, you should be able to identify the root cause of the error and implement a solution to resolve it.