SAP Revenue Accounting & Reporting (SAP RAR) · is not just a reporting requirement; its implementation must be treated as a separate project by nature. As the new accounting standard

SAP Revenue Accounting & Reporting(SAP RAR)

Comply with new statutory regulations for revenue recognition, such as IFRS 15, whilesupporting existing requirements with SAP Revenue Accounting & Reporting.

Handle orders, invoices and events from multiple SAP and non-SAP systems whilegaining flexibility by decoupling revenue recognition rules from order entry and billing

systems.

SAP Revenue Accounting & Reporting

HELP ENSURE COMPLIANCE

Comply with new statutory regulations for revenue recognition and support existingrequirements.

SUPPORT PERFORMANCE OBLIGATIONS & REVENUE RECOGNITIONS

Gain the flexibility you need to support different revenue recognition methods as wellas multi-element scenarios.

AUTOMATE & SIMPLIFY STANDARD PROCESSES

Spend more time on complex contracts and specific contract terms with automatedprocesses.

www.invenio-solutions.com


Why SAP RAR?

There are multiple solutions available in the market to address the upcoming IFRS 15requirements, but SAP offers SAP RAR as a standard add-on for no additional license costto comply with these regulations.

In addition, the new SAP RAR solutioncan be integrated with existingrevenue applications and can beleveraged to meet the existingcompliance and disclosurerequirements as well as new revenueguidelines.

The success of the project relies onthe vendor who is implementing theproject.

Key Capabilities of SAP RAR

Revenue Compliance

• Handle the converged US-GAAPand IFRS revenue standard

• Manage the transition periodbetter with native support formultiple GAAPs

Revenue Recognition and Multi-Element Scenarios

• Support many different performanceobligation and revenue recognition types

• See which operational items areconsidered by the revenue andaccounting engine and how they aretreated

GAAP Requirements

• Support multiple GAAP requirementsand ledgers

• Comply with existing and newregulations, as well as local GAAP, eitherthrough a multi-ledger approach or anaccount-based method

Accounting Standards Monitoring

• Rely on SAP’s ongoing monitoring ofthe accounting standards process

• Implement new requirements andregulations immediately

Standard Process Automation

• Eliminate the need for manualprocesses and spreadsheets

• Reduce errors and shorten audittime while ensuring compliance

• Spend more time on complexcontracts and specific contractterms

Summary

The new revenue regulations impact not only IFRS, but also US-GAAP as well. The new effectivedate of these regulations is the beginning of the 2018 fiscal year. Unlike other regulations, IFRS 15is not just a reporting requirement; its implementation must be treated as a separate project bynature.

As the new accounting standard is mandatory for organisations across the US and Europe, the newrevenue recognition and reporting guidelines issued by the IASB and the FASB will significantlyimpact the way companies operate, store and report their financials. The new guidelines willimpact not only publicly traded companies, but also private and non-profit organisations thatfollow the FASB and the IASB standards.

The Five-Step Framework for Revenue Recognition

Adopting the new standards can be quite challenging and complex. The regulations aresubject to interpretation, because the standards are principles-based and emerging.Based on the IFRS 15 guidelines, the revenue recognition process needs to be adopted ina five-step framework.

The framework is the core structure of IFRS 15 ASC 606 revenue accounting standard; itconsists of five different steps for revenue recognition.


The SAP Revenue Accounting and Recognition Component is based on the 5-step modelof IFRS 15 and also meets the requirement of FAS 2014-09/ ASC 606.

Why Work with Invenio?

Invenio Business Solutions is an award-winning UK based SAP Gold Partner with aglobal footprint. Since 2006, we havebeen developing solutions for globalcompanies to leverage their SAPinvestment to their full advantage, withsolutions that drive value

and outstanding results. We have createdstrategic relationships with some of theworld's leading organisations, fromUniversal Music Group and News UK to thegovernments of Saudi Arabia and theMaldives.

Customer Focus

Our customers are our focus and comefirst in everything we do.

Transparency

We believe that fairness, honesty andintegrity are key to sustainable businesssuccess and long-term colleagueengagement.

Expertise

We deliver business value to our clients bybeing the best at what we do.

Care

We care about the holistic wellbeing of ourpeople as it is key to our individual andcollective excellence.

“Invenio are a reliable partner with an outstanding level ofcommon sense and dedication.”

Jens Kessler, Chief Information Officer at Universal Music Group


The Invenio Values

For more information contact

+44 (0) 330 440 1800 | [email protected] – Global Headquaters | Invenio Business Solutions Limited

125 Wharfedale Road, IQ Winnersh, Reading, RG41 5RB, United Kingdom



Documents

SAP Revenue Accounting & Reporting (SAP RAR) · is not just a reporting requirement; its implementation must be treated as a separate project by nature. As the new accounting standard