How To Fix FARR_CONTRACT_MAIN267 - Perf. oblig. &1 must not have the right of return.

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 267

• Message text: Perf. oblig. &1 must not have the right of return.

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_MAIN267 - Perf. oblig. &1 must not have the right of return. ?

  The SAP error message FARR_CONTRACT_MAIN267 indicates that there is an issue with a performance obligation in a contract, specifically that the performance obligation (identified by &1) must not have the right of return. This error typically arises in the context of contract management and revenue recognition processes within SAP, particularly in the SAP S/4HANA environment.
  Cause:
  The error is triggered when a performance obligation is defined in a way that it includes a right of return, which is not allowed for the specific contract or configuration you are working with. This can happen due to:
  
  Contract Configuration: The contract may be set up incorrectly, allowing for a right of return when it should not.
  Performance Obligation Settings: The performance obligation may have been incorrectly defined to include a right of return.
  Business Rules: The business rules or policies governing the contract may not permit returns for certain types of performance obligations.
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Review Contract Settings:
  
  Check the contract settings in SAP to ensure that the performance obligation is configured correctly.
  Ensure that the right of return is not enabled for the specific performance obligation in question.
  
  
  
  Modify Performance Obligation:
  
  If the performance obligation is incorrectly set up, modify its settings to remove the right of return.
  This may involve changing the configuration in the contract management module or the revenue recognition settings.
  
  
  
  Consult Business Rules:
  
  Verify the business rules related to the contract and performance obligations. Ensure that they align with the configuration in SAP.
  If necessary, consult with your finance or legal team to understand the implications of the right of return in your contracts.
  
  
  
  Testing:
  
  After making changes, test the contract and performance obligation to ensure that the error no longer occurs.
  Validate that the changes comply with your organization’s policies and accounting standards.
  
  
  
  Documentation:
  
  Document any changes made to the contract or performance obligation for future reference and compliance purposes.
  
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may provide additional insights or updates related to this error message.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have implemented.
  Training and Documentation: Ensure that users involved in contract management are trained on the correct setup of performance obligations and the implications of rights of return.
  
  If the issue persists after following these steps, it may be beneficial to consult with your SAP support team or a consultant who specializes in SAP contract management and revenue recognition.