- Meets the accounting standards in accordance with IFRS 15 (mandatory from 01/01/2018 for capital market-oriented companies that report in accordance with IFRS)
- Can be used for multi-component transactions and different business models such as service contracts and subscriptions
- Improvement of data quality and reporting in CO-PA
- SAP standard solution for revenue recognition
- Additional applications with S / 4HANA
SAP RAR (Revenue Accounting and Reporting) offers highly configurable software in accordance with IFRS 15. For reporting periods starting from January 1, 2018, capital market-oriented companies are obliged to recognize the revenue according to special guidelines regarding the date and the amount. This leads to fundamental changes in accounting practice, especially for companies with complex transactions, such as telecommunications companies with a variety of multi-component contracts. Among other things, more informative and relevant information on revenue recognition must also be provided. As an implementation partner, we develop a technical design to implement your business requirements in agile coordination with you. Existing processes and the system landscape for revenue recognition are analyzed in order to identify relevant adjustment areas.
IFRS 15 stipulates the bundling of related individual services and the revaluation of these individual services. This reform affects revenue from contracts with customers and results in changes in accounting practices. On the business side it must be decided which customer contracts should be bundled according to IFRS 15 guidelines. In addition, performance obligations must be defined. After fulfillment of those performance obligations the revenue recognition takes place. The principle-based revenue accounting according to IFRS 15 is inasmuch abstract as the principles are difficult to apply to specific circumstances.
GTW supports you in designing a standard-compliant revenue recognition and an optimal revenue model for your business area:
• Identify customer contracts
• Define independent performance obligations within the contracts
• Determine the transaction price
• Distribute the transaction price among the individual performance obligations based on the standalone selling prices
• Recognize the revenue as the performance obligations are fulfilled
• Design and implement processes to determine the necessary data for extended disclosure requirements in the appendix
• In-house developments to meet company needs