How To Fix FARR_CONTRACT_MAIN826 - Perf. oblig. &1 and &2 should both be unit distinct or not unit distinct

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_MAIN - Revenue Accounting: Contract Management

• Message number: 826

• Message text: Perf. oblig. &1 and &2 should both be unit distinct or not unit distinct

What causes this issue?

There is at least one performance obligation for which the value in the
<ZK>Unit Distinct</> field is different from the others.

System Response

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

How to fix this error?

You need to make sure that all performance obligations at different
levels in a compound performance obligation are all set to either
<ZK>Unit Distinct </>or not.

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_MAIN826 - Perf. oblig. &1 and &2 should both be unit distinct or not unit distinct ?

  The SAP error message FARR_CONTRACT_MAIN826 indicates an issue with the performance obligations in a contract, specifically that the two performance obligations referenced (denoted as &1 and &2) should either both be unit distinct or both not be unit distinct. This error typically arises in the context of contract management and revenue recognition processes, particularly when dealing with performance obligations in SAP S/4HANA or SAP RAR (Revenue Accounting and Reporting).
  Cause:
  The error occurs when there is a mismatch in the unit distinctness of the performance obligations. In SAP, performance obligations can be classified as:
  
  Unit Distinct: This means that the performance obligation can be satisfied on a per-unit basis (e.g., selling individual items).
  Not Unit Distinct: This means that the performance obligation is satisfied as a whole and cannot be broken down into individual units (e.g., a service contract for a year).
  
  If one performance obligation is defined as unit distinct and the other is not, SAP will throw this error to prevent inconsistencies in revenue recognition.
  Solution:
  To resolve this error, you need to ensure that both performance obligations are either unit distinct or not unit distinct. Here are the steps you can take:
  
  
  Review Performance Obligations: Check the definitions of the performance obligations involved (both &1 and &2). You can do this in the contract management or revenue recognition module.
  
  
  Modify Definitions: If you find that one is unit distinct and the other is not, you will need to modify one of them to match the other. This may involve:
  
  Changing the unit distinctness of one of the performance obligations.
  Re-evaluating the contract structure to ensure that the obligations align correctly.
  
  
  
  Consult Documentation: Refer to SAP documentation or guidelines on performance obligations to understand the implications of changing the unit distinctness.
  
  
  Test Changes: After making the necessary adjustments, test the contract again to ensure that the error is resolved.
  
  
  Seek Help if Needed: If you are unsure about how to proceed or if the issue persists, consider reaching out to your SAP support team or consulting with an SAP expert.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that might provide additional insights or updates regarding this error message.
  Transaction Codes: Familiarize yourself with transaction codes related to contract management and performance obligations, such as FARR for Revenue Accounting and Reporting.
  Training and Documentation: Consider training sessions or documentation on revenue recognition and performance obligations in SAP to better understand the concepts and avoid similar issues in the future.
  
  By ensuring that both performance obligations are consistently defined, you should be able to resolve the error and proceed with your contract processing.