How To Fix VFRR046 - Revenue recognition rule between source &1 &2 and target &3 &4 is missing

SAP Error Message - Details

• Message type: E = Error

• Message class: VFRR - SD revenue recognition

• Message number: 046

• Message text: Revenue recognition rule between source &1 &2 and target &3 &4 is missing

What causes this issue?

This item is a time or service-related revenue recognition item. In
this case there is a contradiction between the target and source items
for revenue recognition.
For example, both the contract and its release orders or deliveries
have been indicated as billing-relevant for a service-related revenue
recognition and they both, therefore, update revenue recognition.
However, only the contract should do this and therefore only the
contract should be indicated as billing-relevant.

System Response

Revenue recognition rules have been defined in the system but there is
no valid rule for this combination of source and target items. If this
message appears when you create a contract, the system saves the
contract but without the correct revenue recognition item.

How to fix this error?

Check copying control in Customizing for the source to the target
document. Ensure that the required revenue recognition process works
for both items. In other words:
Are the document types and item categories correctly maintained?
Have the correct revenue recognition categories been assigned to the
item categories?
If an error has occured and revenue recognition should not take place
at all, change the revenue recognition category for the item, or change
the item category. Otherwise, delete the item or leave the transaction.

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message VFRR046 - Revenue recognition rule between source &1 &2 and target &3 &4 is missing ?

  Certainly! Here's a detailed explanation for the SAP error message:
  
  SAP Error Message:
  VFRR046: Revenue recognition rule between source &1 &2 and target &3 &4 is missing
  
  Meaning / Cause:
  This error occurs in SAP Revenue Accounting and Reporting (RAR) or in the Revenue Recognition process when the system tries to determine the revenue recognition rule for a particular source and target combination but cannot find a valid rule defined in the configuration.
  
  Source &1 &2: These placeholders represent the source object type and source object subtype (e.g., contract type, sales document type).
  Target &3 &4: These placeholders represent the target object type and target object subtype (e.g., revenue element, revenue contract line).
  
  The system requires a mapping between source and target objects to know how to recognize revenue correctly. If this mapping (revenue recognition rule) is missing, the system cannot proceed with revenue recognition for the given transaction.
  
  Where does this happen?
  
  During revenue recognition processing in SAP RAR.
  When posting or simulating revenue recognition.
  When the system tries to create revenue elements or revenue contract lines from source documents.
  
  
  Root Causes:
  
  Missing configuration: The revenue recognition rule between the specified source and target objects is not maintained in the customizing.
  Incorrect or incomplete master data: The source or target object types/subtypes are not correctly assigned or maintained.
  Customizing inconsistency: The revenue recognition rules are not properly transported or maintained across systems (e.g., missing in QA or Production).
  New business scenario: A new sales document type or contract type was introduced but the revenue recognition rules were not updated accordingly.
  
  
  Solution / How to fix:
  
  
  Check Revenue Recognition Rule Configuration:
  
  
  Go to SAP IMG path:
  
  Financial Accounting (New) -> Revenue Accounting and Reporting -> Revenue Recognition -> Define Revenue Recognition Rules
  
  
  Or use transaction code:
  
  SPRO ? Navigate to the above path.
  
  
  Verify if the revenue recognition rule exists for the combination of source object type/subtype and target object type/subtype mentioned in the error message.
  
  
  
  
  Maintain Missing Rules:
  
  If missing, create the revenue recognition rule for the relevant source and target objects.
  Ensure the rule is correctly defined with the appropriate parameters (e.g., recognition method, timing, etc.).
  
  
  
  Check Master Data:
  
  Verify that the source and target objects in the transaction are correctly assigned and consistent with the customizing.
  
  
  
  Transport and System Consistency:
  
  If the rule exists in development but not in production, ensure the customizing is transported properly.
  
  
  
  Testing:
  
  After maintaining the rule, test the revenue recognition process again to confirm the error is resolved.
  
  
  
  Consult SAP Notes:
  
  Check SAP Notes for any known issues related to this error message.
  
  
  
  
  Additional Information:
  
  Revenue Recognition Rules define how revenue is recognized from source documents to revenue elements or contract lines.
  Proper configuration is critical for compliance with accounting standards (e.g., IFRS 15).
  This error is common when implementing new contract types or sales document types without updating revenue recognition rules.
  Documentation and training on revenue recognition configuration can help avoid such errors.
  
  
  Summary:
  
  
  
  Aspect
  Details
  
  
  
  
  Error Message
  VFRR046: Revenue recognition rule between source &1 &2 and target &3 &4 is missing
  
  
  Cause
  Missing revenue recognition rule configuration between specified source and target objects
  
  
  Solution
  Maintain the missing revenue recognition rule in SAP IMG under Revenue Accounting and Reporting configuration
  
  
  Transaction
  SPRO (IMG), or relevant customizing transactions
  
  
  Notes
  Ensure transport and master data consistency; check SAP Notes for updates
  
  
  
  
  If you provide the exact values for &1, &2, &3, &4 from your error message, I can help you identify the exact objects involved and guide you more specifically.