How To Fix FARR_CONTRACT_MAIN803 - All relevant perf. oblig. are excluded from allocation (including &1)

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 803

• Message text: All relevant perf. oblig. are excluded from allocation (including &1)

What causes this issue?

All relevant performance obligations are marked as "Exclude from
Allocation".
When the system allocates the transaction price down the hierarchy, it
has an amount to allocate among a group of performance obligations
(either under the same higher-level performance obligation or with no
higher-level performance obligation). However, all the performance
obligations of the group are marked as "Exclude from Allocation". In
this case, the system cannot continue to allocate the amount.

System Response

The system prevents you from continuing.

How to fix this error?

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

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_MAIN803 - All relevant perf. oblig. are excluded from allocation (including &1) ?

  The SAP error message FARR_CONTRACT_MAIN803 indicates that all relevant performance obligations are excluded from allocation in the context of contract management, particularly in the area of revenue recognition or performance obligations in SAP S/4HANA or SAP ERP systems.
  Cause:
  This error typically arises due to one or more of the following reasons:
  
  
  Exclusion Criteria: The performance obligations that are supposed to be allocated may have been marked for exclusion due to specific criteria set in the system. This could be due to settings in the contract or the allocation rules.
  
  
  Contract Settings: The contract may not be properly configured to include the relevant performance obligations. This could be due to missing or incorrect data in the contract or the performance obligations themselves.
  
  
  Status of Performance Obligations: The performance obligations might be in a status that does not allow them to be included in the allocation process (e.g., they might be completed, canceled, or otherwise inactive).
  
  
  Allocation Rules: The allocation rules defined in the system may not match the performance obligations, leading to their exclusion.
  
  
  Solution:
  To resolve this error, you can take the following steps:
  
  
  Check Contract Configuration: Review the contract settings to ensure that all relevant performance obligations are included and correctly configured. Make sure that the performance obligations are active and not marked for exclusion.
  
  
  Review Performance Obligations: Check the status of the performance obligations associated with the contract. Ensure that they are in a status that allows them to be allocated.
  
  
  Examine Allocation Rules: Look into the allocation rules defined in the system. Ensure that they are set up correctly to include the relevant performance obligations.
  
  
  Consult Documentation: Refer to SAP documentation or help resources for specific details on how to manage performance obligations and allocation rules.
  
  
  Debugging: If the issue persists, consider using debugging tools in SAP to trace the allocation process and identify where the exclusion is occurring.
  
  
  SAP Notes and Support: Check for any relevant SAP Notes that might address this specific error or provide additional guidance. If necessary, reach out to SAP support for assistance.
  
  
  Related Information:
  
  
  Performance Obligations: In the context of revenue recognition, performance obligations are promises in a contract to transfer a good or service to a customer. Proper management of these obligations is crucial for accurate financial reporting.
  
  
  SAP S/4HANA: This error is often encountered in the context of SAP S/4HANA, which has specific functionalities for managing contracts and performance obligations.
  
  
  Transaction Codes: Familiarize yourself with relevant transaction codes (e.g., VA01 for sales orders, VF01 for billing documents) that may help in managing contracts and performance obligations.
  
  
  By following these steps and understanding the underlying causes, you should be able to resolve the error and ensure that performance obligations are correctly allocated in your SAP system.