SAP Revenue Accounting & Reporting
(SAP RAR)
SAP Revenue Accounting & Reporting
Comply with new statutory regulations for revenue recognition, such as IFRS 15, while
supporting existing requirements with SAP Revenue Accounting & Reporting.
Handle orders, invoices and events from multiple SAP and non-SAP systems while
gaining flexibility by decoupling revenue recognition rules from order entry and billing
systems.
AUTOMATE & SIMPLIFY STANDARD PROCESSES
Spend more time on complex contracts and specific contract terms with automated
processes.
HELP ENSURE COMPLIANCE
Comply with new statutory regulations for revenue recognition and support existing
requirements.
SUPPORT PERFORMANCE OBLIGATIONS & REVENUE RECOGNITIONS
Gain the flexibility you need to support different revenue recognition methods as well
as multi-element scenarios.
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Why SAP RAR?
There are multiple solutions available in the market to address the upcoming IFRS 15
requirements, but SAP offers SAP RAR as a standard add-on for no additional license cost
to comply with these regulations.
In addition, the new SAP RAR solution
can be integrated with existing
revenue applications and can be
leveraged to meet the existing
compliance and disclosure
requirements as well as new revenue
guidelines.
The success of the project relies on
the vendor who is implementing the
project.
Key Capabilities of SAP RAR
Revenue Compliance Revenue Recognition and Multi-Element Scenarios
• Handle the converged US-GAAP • Support many different performance
and IFRS revenue standard obligation and revenue recognition types
• Manage the transition period • See which operational items are
better with native support for considered by the revenue and
multiple GAAPs accounting engine and how they are
treated
Standard Process Automation Accounting Standards Monitoring
• Eliminate the need for manual • Rely on SAP’s ongoing monitoring of
processes and spreadsheets the accounting standards process
• Reduce errors and shorten audit • Implement new requirements and
time while ensuring compliance regulations immediately
• Spend more time on complex
contracts and specific contract
terms
GAAP Requirements
• Support multiple GAAP requirements
and ledgers
• Comply with existing and new
regulations, as well as local GAAP, either
through a multi-ledger approach or an
account-based method
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The Five-Step Framework for Revenue Recognition
Adopting the new standards can be quite challenging and complex. The regulations are
subject to interpretation, because the standards are principles-based and emerging.
Based on the IFRS 15 guidelines, the revenue recognition process needs to be adopted in
a five-step framework.
The framework is the core structure of IFRS 15 ASC 606 revenue accounting standard; it
consists of five different steps for revenue recognition.
The SAP Revenue Accounting and Recognition Component is based on the 5-step model
of IFRS 15 and also meets the requirement of FAS 2014-09/ ASC 606.
Summary
The new revenue regulations impact not only IFRS, but also US-GAAP as well. The new effective
date of these regulations is the beginning of the 2018 fiscal year. Unlike other regulations, IFRS 15
is not just a reporting requirement; its implementation must be treated as a separate project by
nature.
As the new accounting standard is mandatory for organisations across the US and Europe, the new
revenue recognition and reporting guidelines issued by the IASB and the FASB will significantly
impact the way companies operate, store and report their financials. The new guidelines will
impact not only publicly traded companies, but also private and non-profit organisations that
follow the FASB and the IASB standards.
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Why Work with Invenio?
Invenio Business Solutions is an award- and outstanding results. We have created
winning UK based SAP Gold Partner with a strategic relationships with some of the
global footprint. Since 2006, we have world's leading organisations, from
been developing solutions for global Universal Music Group and News UK to the
companies to leverage their SAP governments of Saudi Arabia and the
investment to their full advantage, with Maldives.
solutions that drive value
The Invenio Values
Customer Focus Expertise
Our customers are our focus and come We deliver business value to our clients by
first in everything we do. being the best at what we do.
Transparency Care
We believe that fairness, honesty and We care about the holistic wellbeing of our
integrity are key to sustainable business people as it is key to our individual and
success and long-term colleague collective excellence.
engagement.
“Invenio are a reliable partner with an outstanding level of
common sense and dedication.”
Jens Kessler, Chief Information Officer at Universal Music Group
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For more information contact
+44 (0) 330 440 1800 | info@invenio-solutions.com
UK – Global Headquaters | Invenio Business Solutions Limited
125 Wharfedale Road, IQ Winnersh, Reading, RG41 5RB, United Kingdom
www.invenio-solutions.com
www.invenio-solutions.com
