SAP Revenue Accounting and Reporting and Ifrs 15 by Dayakar DomalaThe IFRS 15 standard is here--is your company ready? Learn how SAP Revenue Accounting and Reporting (RAR) can align your financial reporting standards with this guide! Walk through the new five-step framework for revenue recognition, dive into best practices for implementing SAP RAR, and then configure the solution. From there, see how to migrate old data, process contracts, and produce reports. Dont delay: Make sure your business is IFRS-compliant!
a. Foundation and Implementation Review the new IFRS 15 standards and understand how SAP RAR helps you integrate them into your business processes. Then learn best practices for an SAP RAR implementation project, from planning to go-live. Finally, walk through the configuration steps for Sales and Distribution and legacy-based revenue recognition.
b. Usage and Migration Learn how to process revenue accounting contracts within the Revenue Accounting Engine (RAE), migrate old revenue data into SAP RAR, and generate key IFRS 15 reports for your industry.
c. Business Cases See how the new regulations have impacted two sample organizations in the telecom and high-tech industries. Apply the lessons learned to your own SAP RAR implementation and revenue practices.
Revenue recognition Five-step framework Vendor analysis matrix Project management and implementation Configuration and migration Revenue contracts Revenue data Dual reporting Business cases Revenue Accounting Engine (RAE)
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Get Informed About IFRS 15 SAP Revenue Accounting and Reporting 1.2
Your source for SAP financials tutorials, tips, and training content. The end result is an application that automates the revenue recognition and accounting process. It decouples operational transactions from accounting so that various operational transactions can be accounted together no matter where the operational data is processed. Before the introduction of SAP Revenue Accounting and Reporting, SAP had a solution in sales and distribution SD called revenue recognition that organizations used to focus on time-based, event-based, or percentage-based revenue recognition. Figure 1 shows how data flows in the SAP system with respect to revenue recognition. It shows that the source module sends data in the adapter reuse layer, which converts it into a revenue accounting item RAI.
IFRS 15 is the new IFRS regulation of revenue recognition that will be effective as of January IFRS 15 regulates revenue recognition.
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What is the new revenue recognition standard?
Any idea how a manufacturing company with warranty have to deal with this change? Also how can the cost of warranty be provided? I suggest that you reach out to your finance auditors to discuss IFRS 15 impacts related to warranty based on your specific processes. Benjamin Wilk. February 1, 1 minute read. Follow RSS feed Like. For instance, Cost Object per Sales Order will determine costs and revenues in both planned and actual data.
Automate your revenue calculations for seamless, transparent reporting and disclosures. Although the goal of International Financial Reporting Standard IFRS 15 and Accounting Standards Codification ASC is to significantly reduce the complexity of the previous revenue recognition guidance, executing the provisions may initially seem anything but simple. The new revenue recognition standard affects all entities — public, private and not-for-profit — that enter into customer contracts to transfer goods, services or nonfinancial assets unless they are within the scope of other standards such as leases and insurance. Public companies needed to begin complying with the new revenue recognition standard as of January 1, , and nonpublic entities reporting under the U. GAAP must begin after December 15, Their contracts typically include multiple-element arrangements involving appropriate revenue allocation, mass volume requiring rule-based revenue recognition, or accrued revenues from longterm projects and shipments. The new standard has less impact on businesses with straightforward, invoice-driven revenue recognition.