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Plan Ahead to Join Bramasol at SAPPHIRE NOW and ASUG Annual Conference

Posted by Bramasol on Tue, Apr 17, 2018 @ 04:15 AM

Bramasol is excited to be at SAPPHIRE NOW and the ASUG Annual Conference, SAP’s biggest event of the year! Join Bramasol and learn the latest about our technology innovations and solutions for challenges facing the Office of the CFO in Orlando, June 5-7th’2018.

As leaders in compliance solutions, Bramasol will be showing the latest updates on RevRec (ASC 606 and IFRS 15) and Lease Accounting (ASC 842 and IFRS 16), as well as purpose-built packages and adaptable technologies for optimizing compliance within overall Financial Transformation solutions. We will be demonstrating the newest releases of SAP Revenue Accounting and Reporting (RAR) and SAP Lease Administration by Nakisa. In addition, you can see our purpose-built, turnkey packaged offering, RevRec Ready Rapid Compliance Solution for disclosure reporting.

You can stop by any time to see the latest from Bramasol at Booth Number: 1149.
Or join us for the following special sessions:

Session 1: ASUG11850 
Results Analysis with SAP Revenue Accounting and Reporting: Nuts and Bolts
Thu 11:00 a.m. - 12:00 p.m.  S331D
Chris Ritterhern - Bramasol

DescriptionIf your company’s revenue is project-driven, changes to the results analysis configuration associated with the SAP Revenue Accounting and Reporting application were either (a) a surprise or (b) a surprise. These changes were necessary for your process to function properly. Discover exactly what changed in results analysis and why.

Session 2: ASUG11142 
Disclosure Reporting and Analytics for the New Revenue Recognition Regulations
Thu 2:00 p.m. – 3:00 p.m. S320G
Trevor Lovegrove – Bramasol and Francie Gallagher - NextGen

Description: The SAP Revenue Accounting and Reporting application is a powerful tool to calculate and book numbers in compliance with the new regulations of ASC 606 and IFRS 15. Bramasol has developed a comprehensive package of reports and accelerators covering all mandated and operational reports. The presenters will discuss the analytics and reports and how they support projects for compliance.

Click here for more info on Bramasol's plans for SAPPHIRE. If you'd like to discuss your specific projects or requirements in Revenue Recognition, Lease Administration or Financial Innovation with S/4 HANA, click here to Book-A-Meeting.

Looking forward to seeing you at SAPPHIRE!

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Topics: SAPPHIRE

Learn how Bramasol Helped a leading Global Publisher with complex RevRec scenarios

Posted by Bramasol RevRec Team on Thu, Apr 12, 2018 @ 06:41 AM

The customer is a global publishing company, which specializes in academic publishing. The company publishes electronic and print books, journals, and encyclopedias, as well as training and educational materials. The organization markets its products to a number of segments including professionals, students, instructors, researchers and more.

The company faced challenging issues around Digital Media, Multi-currency Intellectual Property and other areas in digital publishing.  They needed a partner expert in SAP RAR and who could guide their SAP SI with RAR integration, data migration and testing challenges.

As the clear leaders in design and implementation of Revenue Recognition solutions, Bramasol was the natural choice. We brought in experts who worked with the SI to develop unique solutions to address all the challenges. After the execution of the project, Bramasol continued helping the customer with expertise and guidance in the rollout of their RAR solution especially with regard to Testing and Data Migration.

Watch Customer Story Video

Customer Story_Global Publishing Company

If you have a challenging or complex RevRec project or simply want the leader in SAP Revenue Accounting, do what the Fortune 500 do, contact Bramasol.

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Compliance-Driven Finance Innovation: Putting the Pieces Together

Posted by David Fellers on Wed, Apr 11, 2018 @ 01:09 PM

Today’s corporate finance professionals face an accelerating set of new challenges, changing compliance requirements and global competitive pressures that threaten to overwhelm the inherent limitations of their existing legacy finance and ERP systems.

Most conventional finance management technologies have been in existence for decades and, while they offer a familiar environment, they have significant limitations when it comes to keeping pace with today’s complex and dynamically changing corporate challenges.

Some of the chronic challenges that arise from these limitations include:

  • Too much time and energy spent on inefficient month-end & year-end close processes
  • Difficulty acquiring and accessing accurate data for financial reporting
  • Time wasted reconciling reports based on conflicting data sets
  • Inability to extract timely ad hoc data for operational decision-making

Layered on top of these enduring issues are new challenges driven by major changes in the compliance and regulatory environment.  These include:

  • Revenue Recognition Changes (ASC 606 and IFRS 15)
  • Lease Accounting Changes (ASC 842 & IFRS 16)
  • Financial Instruments Impairments & Disclosures (IFRS 9)
  • General Data Protection Regulation (GDPR) for companies doing business in the EU

Of course, the overarching challenge facing CFOs is their responsibility to handle all the above issues while also providing strategic and tactical leadership to meet their companies’ business goals for growth, market share, and profitability amid increasingly dynamic and globally competitive environments.

In working with a wide range of companies, across multiple industries, our Bramasol team has seen a variety of mindsets on the part of C-Suite decision-makers when it comes to addressing these issues. 

Most people thankfully have now abandoned the “head in the sand” approach and are actively grappling with the reality that the need for compliance-driven changes can’t be ignored. 

But the majority of CFOs and CEOs can do more to fully embrace the new compliance regulations as an opportunity for driving transformative changes across the organization.  Many of these companies are attempting a piecemeal approach to compliance based on ad hoc point solutions, spreadsheets, and other short-term fixes. Ultimately, this limited-scope mind-set almost always costs more and delivers less than can be achieved with a broader and more integrated approach.

On the other end of the spectrum are proactive forward-looking company leaders who see these external compliance-driven change-drivers as major opportunities for truly transformative finance innovation.

As part of our efforts to serve the whole range of companies’ needs, from those that just want to put their toe in the water and comply to those who are proactively committed to financial transformation, we’ve focused on creating targeted purpose-built solutions for compliance that that also can readily integrate with big-picture financial transformation initiatives.

We fundamentally believe that Compliance Innovation lays the foundation for Finance Innovation.

So how does a company go about getting targeted cost-effective compliance in the near-term along with a transformative path forward to overall Finance Innovation?  Well, for those companies that are already invested in SAP technologies, the answer is S/4HANA and S/4HANA Cloud.  Looking at the SAP roadmap, it is clear that S/4 HANA will be the future for all SAP-based companies and that virtually everyone will undertake migration projects to implement S/4 HANA over the next two to three years. 

Given the near-future reality of S/4 HANA as the core SAP technology platform, coupled with the excellent and cost-effective S/4 HANA Cloud functionality available right now, we believe in charting a path that takes maximum advantage of today’s compliance-driven requirements to usher in tomorrow’s financial transformation.

Our immediate compliance activities have been focused on integrating purpose-built applications such as SAP Revenue Accounting and Reporting (RAR) for revenue recognition (ASC 606 and IFRS 15) along with SAP Lease Administration by Nakisa and SAP Real Estate (RE/FX) for lease accounting (ASC 842 and IFRS 16).  We augment these specialized applications with pre-packaged solutions such as RevRec Disclosure Reporting, Lease Data Extraction/Abstraction/Migration, SAP Cloud Analytics, Cloud for Planning and flexible integration tools that span existing ECC and SD environments with future-leaning S/4 HANA capabilities.

This forward-looking journey to the future with S/4 HANA and the digital core can effectively unify and integrate these four key arenas 1) Cloud-based technologies, 2) Data unification, 3) Mobile access everywhere and 4) People-oriented usability and personalized processes.

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You might say we’re betting the farm on a future built around S/4 HANA, but in truth all companies that use SAP software today have already made that same bet.  They just may not have given the future much thought as they grapple with the pressing issues of today.  But, if we all stop and take a look ahead, it’s clear what is coming – and it is S/4 HANA, either on-premise or in the cloud (or both).

Those companies that acknowledge this reality today and align their near-term compliance efforts with an S/4 HANA enabled future, will reap the benefits by putting all the puzzle pieces together to not only Comply but also to Improve Customer Engagement, Increase Profitability, Better Manage Inventory and Assets, Streamline Operational Processes, and Optimize Cash Generation.

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In summary, by creating Compliance Innovation solutions for today with built-in Finance Innovation and migration opportunities for tomorrow, companies can cost-effectively leverage a highly extensible technology-stack that limits any dead-ends or throw-away implementation efforts along the way, and positions them to grow and be nimble in a competitive environment while addressing new complex regulations.  A company cannot achieve Finance Innovation without mastering regulatory compliance in a streamlined and strategic manner.

To learn more about these opportunities, plan to visit Bramasol at SAPPHIRE NOW

 

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Improving Financial Transparency with Adoption of ASC 606

Posted by Bramasol RevRec Team on Tue, Apr 10, 2018 @ 06:15 AM

RevRecReady-HotTip-12-1Now that the adoption deadline for ASC 606 ( IFRS 15 for IFRS filers), revenue recognition for public entities has passed, the readers of companies’ financial statements should expect a much more robust financial reporting over revenue recognition.  

In addition to the new five step model, companies now are required to disclose in a separate footnote, a new set of data points both quantitative and qualitative  about the company’s revenue recognition processes.

The objective of the new standard is to “disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows. Entities can accomplish this by providing qualitative and quantitative information regarding its contracts with customers, the estimates and judgments used to measure its revenue, and the nature of any assets recognized related to the costs of obtaining the contracts.”

How extended payment terms can mask important revenue recognition info in financial statements:

In a recent article published on cfo.com by Vincent Ryan on March 27, 2018, titled “Controller Charged in Revenue Recognition Scheme” he states that the SEC charged a public company controller with fraud by using a number of “improper tactics” including extended payment terms and then goes on to say that the SEC noted in its enforcement order that “The fraud created the misperception that Maxwell’s ultracapacitor growth was far more successful than reality,”  Extended payment terms are very common tactics to entice potential customers into a sale because the customer will get the good or service now but will not have to pay immediately. From a company perspective, this will increase the revenue recognized but a reader of the company’s financial statements will not be able to assess the payments terms and whether there is a significant financing component embedded within the company’s revenue recognition accounting processes.

How ASC 606 new disclosure requirements can bring more transparency to financial reporting:

ASC 606 strives to change that issue by requiring significantly more disclosure regarding that missing piece of information and also will require companies to bifurcate the related interest portion from the revenue portion. It could also cause more questions from the readers of a company’s financial statements knowing that there is a significant financing component disclosure. 

Disclosure of Significant Financing Components:

One of the new disclosure requirements specifically relates to the existence of a significant financing component in a revenue contract. Therefore companies will now be required to disclose to the readers of their financial statements in the new revenue disclosure any effects of financing separately from contracts with customers. The nature of the disclosure will inform the reader about whether there is any significant financing components that are over one year old. This new disclosure will inform the reader that the company is essentially financing the revenue transaction because for some transactions, the receipt of consideration does not match the timing of the transfer of goods or services to the customer (e.g., the consideration is prepaid or is paid after the services are provided). When the customer pays in arrears, the entity is effectively providing financing to the customer. Conversely, when the customer pays in advance, the entity has effectively received financing from the customer.

Relevant ASC 606 Excerpt: (ASC 606-10-32-20 An entity shall present the effects of financing (interest income or interest expense) separately from revenue from contracts with customers in the statement of comprehensive income (statement of activities). Interest income or interest expense is recognized only to the extent that a contract asset (or receivable) or a contract liability is recognized in accounting for a contract with a customer. In accounting for the effects of the time value of money, an entity also shall consider the subsequent measurement guidance in Subtopic 835-30, specifically the guidance in paragraphs 835-30-45-1A through 45-3 on presentation of the discount and premium in the financial statements and the guidance in paragraphs 835-30-55-2 through 55-3 on the application of the interest method.”)

Improving Financial Transparency with Adoption of ASC 606-blog-graphic-10-04-2018

Summary:

The new revenue recognition standard will bring much more visibility to a company’s revenue recognition processes and new data points that will help readers of the company’s financial statements more clarity to make more informed financial analyses.

Click here to learn more about how Bramasol can help with RevRec compliance and optimization.

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Topics: revrec hot-tips, ASC606

Watch how Bramasol helped a Leading Multinational Retail Giant comply with Leasing Standards ASC 842 and IFRS 16

Posted by Bramasol Leasing Administration Team on Thu, Apr 5, 2018 @ 05:50 AM

The customer is a Leading Global Organization and Multinational Retailing Corporation with annual revenues in excess of US$480 billion and which is one of the largest private employer in the world with over 2 million employees. As an international company, our customer is impacted by the new lease regulations ASC842 and IFRS16 that will take effect from January 2019. These new standards will change the way balancing & handling of lease contracts is performed and will require the company to report almost all lease contracts on the balance sheet, rather than off balance sheet.

The Company is not an early adopter of the standards, but needs to load its leases as part of a first release by March 2018 using the old standards (ASC 840 and IAS17) for North America, Europe, Latin America & Asia Pacific. This is a major challenge, since it involves around 10,000 leases distributed amongst about 950 company codes.

As leading co-innovation partner with both SAP & Nakisa, Bramasol provided a holistic set of solutions & expertise to address the impact and make the company ready for new Lease Accounting Standards ASC842 & IFRS16. We Implemented Nakisa SLAN Enabled control of lease contracts with multi-layered approval process Integration with Native Finance System which is Secure, Scalable & Flexible. This enabled lease accounting compliance & streamlined lease administration processes for global lease portfolios.

CS Retail

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Topics: ASC842, SAPLeaseAdmin, IFRS16

IFRS 16 Leases: Complying with the New Standard - Don't Wait to Get Started

Posted by Bramasol Leasing Administration Team on Mon, Apr 2, 2018 @ 09:04 AM

LeaseAdministration-HotTipA recent article in Accountancy Daily looks at the important challenges that companies are facing as they prepare for implementation of new lease accounting standard, IFRS 16.  

The article touches on key topics including:

  • Transparency
  • Data capture
  • Legacy processes
  • Transition processes

The article includes interview comments from Pete Graham, director for finance solutions and mobility at SAP Finance, along with other industry thought leaders.

According to Pete Graham, "Because clients have waited on other projects that have come before, they see that was not a good strategy, they are being more proactive than normal".

"I have never had a customer come back to me and say 'you should have told us to wait longer to start this compliance project, because we have finished early and it was a piece of cake'," Graham says. "When we started looking at this market as far back as 2010, we talked to around 500 customers and found there was only one who reported they already had full visibility of their leases. Every other customer – roughly 499 of them – said 'this information is scattered across the enterprise, in different forms. Some on paper, some electronic'. One customer had lease information across 700 different finance departments around the world."

Regarding data capture challenges, the article also points out, "The practicality of collecting the information about company leases, though, is far from straightforward. Most companies are not in the practice of capturing leases as they would other data and the information is often scattered in various forms across the organisation. Instead, the majority of companies manage their leases in spreadsheets, and even then, there is no guarantee all the leases are covered. Some, especially long-standing leases, may be handwritten, so even where the agreement is located, deciphering the information within it can prove problematic."

Since the new leasing standards-setting process began, Bramasol has been at the forefront of addressing these and other issues to help our customers get ready for both IFRS 16 and ASC 842. We have developed the Lease Administration Solution Engagement Roadmap (LASER) that brings together all compliance requirements, stakeholder needs and work-stream processes within a unified and disciplined implementation process.

Working with dozens of clients Bramasol has developed a Data Abstraction and Migration methodology that includes machine learning, OCR and data quality assurance steps.  “Our goal with this new service,” said John Froelich, VP Marketing and Strategy, “ is to provide our clients with a complete end to end service that gets them compliant and sets them up for long – term success.”   By combining Bramasol’s Abstraction Services with the LASER methodology, clients have an end-to-end process to ensure compliance that is efficient, effective and meets the scrutiny of auditors.  Bramasol Leasing Solution

 Leasing Data Transformation_R1

Click here to learn more about how Bramasol can help with your lease accounting compliance.

 

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Join Bramasol at SAP Aerospace & Defense Innovation Days

Posted by Bramasol on Fri, Mar 30, 2018 @ 07:54 AM

Plan to join Bramasol at SAP Aerospace and Defense Innovation Days, April 9-11, 2018 in Boston, MA where you can learn the latest about our technology innovations and solutions for challenges facing the Office of the CFO.

We are helping to lead the discussion with over 200 A&D industry peers to drive innovation and identify growth opportunities. You will discover how to make sense of technology, and learn from a complete program of showcases, presentations, and customer sessions, along with invaluable networking opportunities with SAP executives and experts, customers, and partners. 

As leaders in compliance solutions, Bramasol will be showing the latest updates on RevRec (ASC 606 and IFRS 15) and Lease Accounting (ASC 842 and IFRS 16), as well as purpose-built packages and adaptable technologies for optimizing compliance within overall Financial Transformation solutions.

We will be demonstrating the newest releases of SAP Revenue Accounting and Reporting (RAR) and SAP Lease Administration by Nakisa.  In addition, you can see our purpose-built, turnkey packaged offering, RevRec Ready Rapid Compliance Solution for disclosure reporting.

Looking forward to seeing you in Boston and discussing  your specific Compliance, Optimization and Financial Transformation needs.

9-11-Apr-2018-event-banner-420x300

 

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Topics: SAP Revenue Accounting and Reporting, financial transformation, SAPLeaseAdmin

Most Companies are Underestimating RevRec Changes According to SAP CAO

Posted by Bramasol RevRec Team on Tue, Mar 27, 2018 @ 08:18 AM

RevRecReady-HotTip.jpgIn a recent interview with CFO.com, Christoph Hütten, chief accounting officer for SAP, discussed the readiness (or lack of readiness) of companies for meeting the new RevRec standards, ASC 606 and IFRS 15.  

Hütten has a broad understanding of the issues, having served from 2009 to 2014 on the IFRS Advisory Council for the International Accounting Standards Board, during the period when IASB issued two exposure drafts of the new standard and published the final rule.

For the past four years Hütten has been part of the Joint Transition Resource Group for Revenue Recognition, formed by the U.S. and international standard setters after the standard’s 2014 publication to answer questions and clarify uncertainties around its application.

According to Hütten, most companies are ready to produce a revenue number for the first quarter. But a majority of those are using what he describes as “interim processes.”

“I see a lot of companies underestimating it,” says Hütten. “They don’t see a big issue for revenue on the face of their income statement. But at some point somebody will be looking at the very detailed disclosures that are required and realize they’re not prepared to make them.”

A key take-away from this article is that companies should not underestimate the complexities of achieving compliance and the importance of implementing automated solutions that can seamlessly mesh revenue recognition with overall accounting processes and business systems.

Click here to read the full article in CFO.com

Click here to learn more about how Bramasol's experts can help you get RevRecReady

 

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Topics: revrec hot-tips

Disclosure requirements under ASC 606: Allocation of transaction price to unfulfilled performance obligations

Posted by Bramasol RevRec Team on Tue, Mar 27, 2018 @ 01:51 AM

RevRecReady-HotTip.jpgNow that the January 2018 deadline has passed, and public companies must now adopt the new revenue recognition standard, ASC 606, disclosures become the central focus of the implementation process.

This assumes that companies have already diagnosed, scoped and concluded how they will implement the new standard - and also assumes your external auditors have already signed off on your implementation project!

Now you must consider what readers of your financial statements will see when they read your Q1 2018 financial statements. Q1 2018 is the first reporting period that companies will disclose the new revenue recognition footnote and all the related new informational data points that it includes.

The objective of the standard is to disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows. Entities can accomplish this by providing qualitative and quantitative information regarding its contracts with customers, the estimates and judgments used to measure its revenue, and the nature of any assets recognized related to the costs of obtaining the contracts.

Although ASC 606 is a principle-based standard, it does provide many requirements.  The following briefly describes the requirements within the broad disclosure topics:

  • Disaggregation of revenue
  • Contract balances
  • Performance obligations
  • Transaction price allocated to remaining performance obligations
  • Significant judgments in the application of the guidance

In this blog, we touch on a new requirement within the performance obligations reporting:
Transaction Price allocated to the Remaining Performance Obligations.

ASC 842 states the following:

“An entity shall disclose all of the following information about its remaining performance obligations:

  • The aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) as of the end of the reporting period
  • An explanation of when the entity expects to recognize as revenue the amount disclosed in accordance with paragraph 606-10-50-13(a), which the entity shall disclose in either of the following ways:
  1. On a quantitative basis using the time bands that would be most appropriate for the duration of the remaining performance obligations
  2. By using qualitative information. “

So, what does this mean?  Companies in the construction and project-based industries where they currently use percentage of completion accounting will be familiar with this because it is similar to backlog.

There are three main differences though that you need to consider upon ASC 606 implementation:

  • Previously, backlog was never audited and was never part of the footnotes to the financial statements. Now they will be and that means that it will receive more scrutiny from your external auditors.
  • There is no official definition or a standard way to calculate backlog. Some companies’ inbound orders based on signed deals, others inbound based on likelihood or verbal contracts. As you can see there is no official definition of backlog.
  • Companies who are not accustomed to preparing a backlog type analysis will now be required to prepare such analyses.

Tips and Implementation Insights:

  • New process: A new process will need to be created for being able to disclose the transaction price allocated to the unfulfilled performance obligation. In the creation of a new process, you must ensure that there are proper controls built within the process. Questions such as, “Who is going to prepare the data in the report? Who is going to approve the data in the report? Is it going to be a system control or a manual control?
  • Auditable: The new disclosure should be auditable for your external auditors to review appropriately. The easier for the auditors, the potential for less incremental fees exists!
  • Element of Forecasting: The transaction price allocated to remaining performance obligations will be a key data point that readers of your financial statements will be monitoring every quarter because it has an element of forecasting or looking into the future. Readers of your financials will likely cross reference this to your guidance (if in fact your company does give guidance) so there is a real need to make sure that FPA, Accounting and Reporting are all in sync. More likely than not, FPA would probably use the new disclosure point as a starting point for the forecast process.Disclosure requirements under ASC 606 _blog-graphic-27-03-2018.jpg
It is critical to be addressing the above issues now in order to assure compliance and to establish the framework for accurately reporting and disclosing the allocation of unfulfilled POBs.

If you need assistance understanding, implementing and/or optimizing these and other requirements of the new RevRec standards, Contact Bramasol for s RevRec Demo.

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Topics: revrec hot-tips

Watch how Bramasol helped a Leading Networking Company Automate and Simplify their RevRec Processes and Reporting

Posted by Bramasol RevRec Team on Thu, Mar 22, 2018 @ 07:46 AM

This Global Fortune 500 company  is a leader in the manufacture, installation and service of computer, networking and computing systems providing solutions for companies of all sizes around the world. Their highly complex landscape and current global migration project required both a focus on achieving near term compliance while positioning a smooth migration to SAP S/4 HANA. They needed someone with deep, proven expertise and experience in implementing SAP RAR.

As the clear leaders in design and implementation of Revenue Recognition solutions, Bramasol was the natural choice.

Bramasol works closely as an integral part of team and is leading key workstreams and initiatives around:

  • Delivering a flexible, scalable, and ASC 606 compliant Revenue Accounting Solution
  • Leading and driving key workstreams and initiatives supporting and designing key, complex multi-element scenarios
  • Delivering comprehensive Disclosure reports based on the foundation of our pre-built tools and reports
  • Providing both technical and end-user training to improve solution acceptance

Our work was well appreciated by the customer – Bramasol's 'secret sauce' shows they are the RevRec Experts

CS_Networking Company says Bramasol’s ‘secret sauce’ shows they are the RevRec Experts_Watch Video.jpg

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If you have a challenging or complex RevRec project or just need the pioneer in SAP Revenue Accounting, do what the Fortune 500 do… Contact Bramasol

Request a Demo Now

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Topics: revenue recognition, SAP Revenue Accounting and Reporting, Success Story, Customer Story, Networking, ASC606

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