Automate & simplify revenue accounting with SAP Revenue Accounting & Reporting (RAR)
Overview
SAP Revenue Accounting and Reporting (RAR) is a critical solution for businesses looking to comply with complex revenue recognition standards. By automating and optimizing the revenue recognition process, SAP RAR ensures accuracy, compliance, and efficiency in financial reporting. It integrates with other financial systems and provides real-time insights, helping businesses manage their revenue streams effectively and make informed financial decisions. Suitable for various industries, SAP RAR supports multiple GAAPs, making it a versatile and scalable solution for global businesses.
Architecture
overview
Automate and simplify Revenue Accounting
Decoupled Operational Sales & Billing and Revenue Accounting
Three (3) basic parts of SAP Revenue Accounting and Reporting
- Inbound Processing as integration layer with embedded rules engine
- Contract Management
- Posting Management
Challenges
Complex and lengthy implementation of accounting regulations, coupled with the need to adhere to numerous reporting requirements.
High dependency on error-prone processes for period-end closing.
Labor-intensive revenue analysis.
Cumbersome and manual revenue accounting processes, especially for contract- and event-based revenue recognition.
Capabilities
Automate and streamline revenue accounting processes.
Facilitate the adoption of accounting regulations, particularly in countries following US GAAP (ASC 606) and IFRS 15.
Speed up period-end closing.
Utilize embedded analytics to gain better insights into profitability and revenue analysis.
Leverage built-in tools for seamless integration and migration from both SAP and non-SAP systems.
Roadmap highlights
Ensure legal compliance by automating revenue recognition for service management.
Boost productivity for revenue accountants with digital assistants.
Speed up the financial close with guided closing activities.
Automate impairment processes during closing activities to improve revenue recognition for IFRS 9.
Enhance automation of revenue recognition for IFRS 15, particularly for product and subscription bundles.
- Revenue Recognition helps ensure compliance with accounting regulations, particularly for countries following both US GAAP and IFRS.
- Utilize integrated end-to-end scenarios for event-based and contract-based revenue recognition.
- Seamlessly incorporate revenue accounting into your existing non-SAP IT infrastructure.
- Lower audit costs by establishing a financial audit trail from the general ledger to subledger postings.
- Reduce compliance and risk management expenses through the use of a comprehensive, integrated framework.
- Utilize Co-Pilot to enhance productivity for revenue accountants managing revenue contracts.
- Employ embedded analytics to enhance decision-making for profitability and revenue analysis.
Quick-Start Implementation of SAP RAR
- Comply with the IFRS 15 regulation
- Validate best practice business scenarios and data inputs needed for compliance
- Get insight on how to benefit from the contract data gathered for compliance using enhanced analytics
- Support installation of SAP Revenue Accounting and Reporting on a development system on premise or on HEC
- Provide preconfiguration, test tool with sample data ready for upload in RAR and test scripts for all scenarios in scope
- Provide key user knowledge transfer
- Leverage pre-configured content and SAP’s experience with the solution
- Accelerate the compliance with IFRS 15 regulation: save 100 to 200 man-days of hard-to-find consultants
- Fixed price
- Definition of interface structures (Revenue Accounting Items = RAI)
- Template applications (BRF+) to process inbound RAIs
- Content for configuration tables to process order RAIs.
- SAP Sales and Distribution (SD)
- non-SAP systems
- SAP Hybris Billing
- Contract creation, fulfillment and termination
- Invoice processing and revenue posting
- Cost recognition
- Fulfillment according to percentage of completion (cost object controlling integration)
Migration to SAP Revenue Accounting and Reporting
- Comply with IFRS 15 (revenue recognition)
- Migrate data from SAP Sales and Distribution, CRM, Hybris Billing and non-SAP systems
- Migrate existing contracts to RAR
- Migrate data within a cost object controlling scenario
- One migration scenario is selected (a migration scenario is defined by business processes which follow similar rules)
- IFRS 15 (or ASC 606) accounting is clarified for contracts to be migrated
- Customer business stakeholders are involved to verify legacy data for migrated contracts
- Customer subject matter experts validate the data
- Overall time plan available (scenario, scope validation, solution design, detailed design, settings and configuration, operational load, data validation, migration)
- Migration on one landscape and knowledge transfer on the data migration tool
- Service applies for go-live phase or proof of concept
- Migration to RAR using a proven tool
- Data validation to ensure high data quality for migrated contracts