How To Fix FARR_CONTRACT_MAIN816 - Non-distinct perf. ob. &1 should be 'Not Unit Distinct'

FARR_CONTRACT_MAIN816 - Overview

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 816

• Message text: Non-distinct perf. ob. &1 should be 'Not Unit Distinct'

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_MAIN816 - Non-distinct perf. ob. &1 should be 'Not Unit Distinct' ?

  The SAP error message FARR_CONTRACT_MAIN816 indicates that there is an issue with the performance obligation (PO) in a contract that is not distinct. Specifically, the message states that the performance obligation identified by the placeholder &1 should be marked as "Not Unit Distinct." This typically arises in the context of revenue recognition and contract management, particularly when dealing with performance obligations in accordance with accounting standards like IFRS 15 or ASC 606.
  
  Cause:
  
  
  Non-Distinct Performance Obligation: The error occurs when the system identifies a performance obligation that is not distinct, meaning it cannot be separately identified from other obligations in the contract. This could be due to the nature of the goods or services being provided, where they are interrelated or dependent on each other.
  
  
  
  Configuration Issues: There may be configuration settings in the SAP system that do not align with the requirements for defining performance obligations.
  
  
  Data Entry Errors: Incorrect data entry during