This document discusses the implementation of IFRS15 and SAP Revenue Accounting and Reporting (RAR). It provides steps for creating a sales order, reviewing revenue accounting items, transferring items to RAR, reviewing the revenue accounting contract and price allocation, recognizing revenue based on delivery or time, posting revenue, and reconciling results. The implementation enables companies to comply with new revenue recognition standards and automate the revenue recognition process in SAP.

1. IFRS15 & SAP RAR
IMPLEMENTATION
IFRS15 & SAP RAR
FASB ASC - 606
Zak Syed

2. Current SAP Revenue Recognition
Source: SAP ASUG

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

4. Create Sales order
Material T-ATD03 Desktop screen Transaction price EUR 2000 SSP EUR 2200
Material T- ZS201 One year service Transaction price EUR 120 SSP EUR 150
Sales order 16014 saved
SAP RAR

5. Review revenue accounting items

6. Transfer revenue accounting items
Select RAI items and
process
RAI transfer
successfully

7. Review revenue accounting contract
Sales order 16014

8. Review RA contract POB Price allocation
Price
allocation

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

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

11. Review RA contract POB Price allocation
Revenue recognition
based on event

12. Delivery and Post goods issue

13. Transfer Goods issue event to SAP RAR

14. Transfer Goods issue event to SAP RAR
Order ready for revenue
recognition

15. Calculate time based revenue

16. Revenue posting Simulation Mode

17. Revenue posting Mode

18. Revenue posting run

19. Revenue posting job

20. Revenue posting document

21. Revenue posted

22. Reconciliation

23. Reconciliation

24. Reconciliation