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

FARR_PROCESS_CHECK028 - Overview

• 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