How To Fix FARR_PROCESS_CHECK028 - Performance obligation &1 is not a distinct POB. This is not supported

SAP Error Message - Details

• Message type: E = Error

• Message class: FARR_PROCESS_CHECK - Messages for Input Checks in Process Layer

• Message number: 028

• Message text: Performance obligation &1 is not a distinct POB. This is not supported

What causes this issue?

Performance obligation &v1& has <ls>Distinct Type</> &v3&. <ls>Contract
Management</> supports only disctinct performance obligations.
<ls>Distinct Type</> must be 'D' or empty.
INCLUDE FARR_BLOCKED_SCENARIO OBJECT DOKU ID TX

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FARR_PROCESS_CHECK028 - Performance obligation &1 is not a distinct POB. This is not supported ?

  The SAP error message FARR_PROCESS_CHECK028 indicates that there is an issue with the performance obligation (POB) in the context of revenue recognition, particularly when using the SAP Revenue Accounting and Reporting (RAR) module. The message states that the specified performance obligation is not considered a distinct POB, which is a requirement for proper revenue recognition under accounting standards such as IFRS 15 or ASC 606.
  Cause:
  
  
  Non-Distinct Performance Obligation: The error typically arises when the system identifies that the performance obligation you are trying to process does not meet the criteria for being distinct. A performance obligation is considered distinct if the customer can benefit from the good or service on its own or together with other readily available resources.
  
  
  Incorrect Configuration: There may be issues with how the performance obligations are configured in the system. This could include incorrect settings in the revenue recognition rules or the way the contract is structured.
  
  
  Data Issues: There may be inconsistencies or missing data in the contract or related documents that prevent the system from recognizing the performance obligation as distinct.
  
  
  Solution:
  
  
  Review Performance Obligation Definition: Check the definition of the performance obligation in question. Ensure that it meets the criteria for being distinct. This may involve reviewing the contract terms and the nature of the goods or services provided.
  
  
  Check Configuration Settings: Review the configuration settings in the SAP RAR module. Ensure that the revenue recognition rules and performance obligation settings are correctly defined.
  
  
  Data Validation: Validate the data associated with the performance obligation. Ensure that all necessary information is complete and accurate. This includes checking the contract, line items, and any related documents.
  
  
  Consult Documentation: Refer to SAP documentation or help notes related to performance obligations and revenue recognition. This can provide insights into the requirements and configurations needed.
  
  
  Engage with SAP Support: If the issue persists after reviewing the above points, consider reaching out to SAP support for assistance. They can provide more specific guidance based on your system configuration and the details of the error.
  
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on performance obligations.
  Training and Documentation: Review training materials or documentation related to SAP RAR and revenue recognition to ensure compliance with accounting standards.
  Community Forums: Engage with SAP community forums or user groups where similar issues may have been discussed, and solutions shared.
  
  By addressing the underlying causes and following the suggested solutions, you should be able to resolve the FARR_PROCESS_CHECK028 error and ensure proper handling of performance obligations in your SAP system.