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Author's profile photo Vijay Venkataraman


In this blog I would like to explain how Reason for rejection works in SAP RAR. Firstly RFR is not a field in RAR and hence we can’t see this in RAR contract / POB.

If you create a Sales order with 2 lines without any RFR and send to SAP RAR, you get allocation and all looks fine. Now if you set RFR on one line and transfer to RAR, then this line gets ZERO allocation which is the correct behavior.

Now coming to the normal scenario where user sets RFR during the initial creation of the Sales Order. When this Order is transferred to SAP RAR the contractual Price on the line where there is RFR gets a ZERO contractual Price but there is allocation also on this POB. This is not actually right as this line having RFR must not get any allocation or impact allocation of other lines.

Here is the suggestion from SAP note 2731374.

Option 1 – Only reject an order item after the POB has already been created in SAP Revenue Accounting and Reporting

Option 2 – The POB cancellation report(FARR_POB_CANCELLATION) can be scheduled as regular job to process this type of POBs. The POB cancellation report is a standard function of SAP Revenue Accounting and Reporting.


The base is that the system checks for the finalization date in the POB and if it less than the current date then it marks this a cancelled.

So the solution will be to schedule the POB cancellation job right after the RAR transfer / Process Jobs so this RFR in SO and the RAR contract will always be in sync.

Kindly let me know if you have faced similar issue or other issues due to RFR so we can keep this blog updated for RFR behavior in RAR.


Vijay V

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      Author's profile photo Puja Agrawal
      Puja Agrawal

      Thanks Vijay!


      I am trying to set this up in our system. Currently, when a POB is canceled in SD (RFR with cancelled contract), it's not updating the finalization date on the POB. I am missing some config here, i guess. Could you give me the basic settings for RFR to flow into RAR?


      Author's profile photo Vijay Venkataraman
      Vijay Venkataraman
      Blog Post Author


      Is the RAI getting created and the value of the POB is changed to Zero ?



      Vijay V