How To Fix FINS_REV_REC105 - A hierarchy across companies is not supported

SAP Error Message - Details

• Message type: E = Error

• Message class: FINS_REV_REC - Event Based revenue recognition

• Message number: 105

• Message text: A hierarchy across companies is not supported

What causes this issue?

Event based revenue recognition is applied to objects which are related
by a hierarchical structure, like the elements of a project. In this
case the object &V1& belongs to company code &V2& and the object &V3&
belongs to company code &V4&. Event based revenue recognition does not
support hierarchical branches containing objects which do not belong to
the same company code.
&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?

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 FINS_REV_REC105 - A hierarchy across companies is not supported ?

  The SAP error message FINS_REV_REC105 indicates that there is an issue with the configuration of revenue recognition in a cross-company scenario. Specifically, it means that the system does not support the use of a hierarchy that spans multiple company codes for revenue recognition purposes.
  Cause:
  
  Cross-Company Code Hierarchy: The error typically arises when you attempt to set up a revenue recognition hierarchy that includes multiple company codes. SAP does not allow revenue recognition processes to be executed across different company codes due to the complexities involved in financial reporting and compliance.
  Configuration Issues: There may be incorrect settings in the revenue recognition configuration that do not align with the requirements for cross-company transactions.
  Master Data Issues: The master data for the relevant profit centers, cost centers, or other organizational units may not be set up correctly to support the intended hierarchy.
  
  Solution:
  
  Review Hierarchy Configuration: Ensure that the revenue recognition hierarchy is set up correctly and does not span multiple company codes. If you need to recognize revenue across different company codes, consider restructuring your approach to keep transactions within a single company code.
  Adjust Master Data: Check the master data for the involved company codes, profit centers, and other relevant entities to ensure they are correctly configured and aligned with the revenue recognition process.
  Consult Documentation: Refer to SAP documentation or notes related to revenue recognition and cross-company code transactions to understand the limitations and best practices.
  Use Separate Hierarchies: If you need to manage revenue recognition for multiple company codes, consider creating separate hierarchies for each company code and managing them independently.
  Seek Expert Assistance: If the issue persists, it may be beneficial to consult with an SAP expert or your internal SAP support team to analyze the specific configuration and provide tailored solutions.
  
  Related Information:
  
  SAP Notes: Check for any relevant SAP Notes that may address this specific error or provide additional guidance on revenue recognition configurations.
  SAP Community: Engage with the SAP Community forums to see if other users have encountered similar issues and what solutions they have implemented.
  Training and Documentation: Consider training sessions or documentation on revenue recognition processes in SAP to better understand the limitations and configurations required for your specific business scenario.
  
  By addressing the configuration and ensuring that the revenue recognition hierarchy is compliant with SAP's requirements, you should be able to resolve the FINS_REV_REC105 error.