How To Fix FARR_CONTRACT_UI254 - Combining performance obligations impossible;they are part of a BOM

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_CONTRACT_UI - Revenue Accounting - Contract UI

• Message number: 254

• Message text: Combining performance obligations impossible;they are part of a BOM

Self-Explanatory Message

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Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_CONTRACT_UI254 - Combining performance obligations impossible;they are part of a BOM ?

  The SAP error message FARR_CONTRACT_UI254 indicates that there is an issue with combining performance obligations in a contract because they are part of a Bill of Materials (BOM). This typically occurs in the context of SAP's Revenue Accounting and Reporting (RAR) module, where performance obligations are linked to contracts and their associated items.
  Cause:
  The error arises when you attempt to combine performance obligations that are associated with a BOM. In SAP, a BOM is a structured list of components that make up a product. When performance obligations are linked to items that are part of a BOM, the system restricts combining them because each component in the BOM may have its own performance obligation, and combining them could lead to inconsistencies in revenue recognition.
  Solution:
  To resolve this error, consider the following steps:
  
  
  Review the BOM Structure: Check the BOM associated with the performance obligations. Ensure that you understand how the components are linked to the performance obligations.
  
  
  Separate Performance Obligations: If the performance obligations are indeed part of a BOM, you may need to keep them separate. Review the business requirements to determine if combining them is necessary or if they should remain distinct.
  
  
  Adjust Contract Items: If possible, adjust the contract items to ensure that they do not include performance obligations that are part of a BOM. This may involve creating new performance obligations or modifying existing ones.
  
  
  Consult Documentation: Refer to SAP documentation or help resources related to Revenue Accounting and Reporting for specific guidelines on handling performance obligations and BOMs.
  
  
  Engage with SAP Support: If the issue persists and you cannot find a resolution, consider reaching out to SAP support for assistance. They can provide insights based on your specific configuration and usage of the system.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional context.
  Configuration Settings: Review the configuration settings in the RAR module to ensure that they align with your business processes.
  Training and Documentation: Ensure that users involved in contract management and revenue recognition are trained on the implications of BOMs and performance obligations in SAP.
  
  By following these steps, you should be able to address the error and ensure that your performance obligations are managed correctly within the SAP system.