ASC 606 - IFRS 15 and SAP RAR

IFRS15 & SAP RARIMPLEMENTATION

IFRS15 & SAP RARFASB ASC - 606

Zak Syed

Current SAP Revenue Recognition Source: SAP ASUG

Future SAP Revenue Recognition SAP Revenue accounting and reporting (SAP RAR) Source: SAP ASUG

Create Sales order Material T-ATD03 Desktop screen Transaction price EUR 2000 SSP EUR 2200Material T- ZS201 One year service Transaction price EUR 120 SSP EUR 150

Sales order 16014 saved

SAP RAR

Review revenue accounting items

Transfer revenue accounting items

Select RAI items and process

RAI transfer successfully

Review revenue accounting contract

Sales order 16014

Review RA contract POB Price allocation

Price allocation

Performance Obligation Material T-ATD03 SSP EUR 2200 Revenue recognition event based at Customer Invoice

Performance Obligation Material T- ZS201 One year service SSP EUR 150 Time based revenue recognition

Review RA contract POB Price allocation

Revenue recognition based on event

Delivery and Post goods issue

Transfer Goods issue event to SAP RAR

Transfer Goods issue event to SAP RAR

Order ready for revenue recognition

Calculate time based revenue

Revenue posting Simulation Mode

Revenue posting Mode

Revenue posting run

Revenue posting job

Revenue posting document

Revenue posted

Reconciliation

Reconciliation

Reconciliation