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SAP S/4HANA Strategies for Success - One-Day Summit, Oct 25, Orange County, CA

Tue, Sep 11, 2018 @ 06:53 AM / by Bramasol Financial Transformation Team posted in S/4HANA

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Bramasol is proud to co-sponsor this important one-day summit on Strategies for Success with S/4HANA.

Your SAP S/4HANA Journey: Strategies for Success 
One-Day Summit, October 25, 2018, Orange County, CA

You have heard how SAP S/4HANA® can empower your organization to run live — and connect all parts of your business to break free from the business boundaries and technology limitations of the past. In this 1-day leadership summit, go one level deeper, and learn how to concretely adopt SAP S/4HANA to achieve higher business success and competitive advantage.

 

YourSAP-S4-Journey

 

Hear from industry thought leaders and subject matter experts from Bramasol and SAP to:

  • Understand what it means to be a digital business and how Intelligent ERP can empower your transformation
  • Examine how to accomplish the critical steps — from defining your business use cases to blueprinting your desired processes and outcomes — that pave the path to successful SAP S/4HANA adoption
  • Break into groups with your peers and implementation experts for interactive discussions on how to set a path to concretely adopt SAP S/4HANA, and the implications and benefits that SAP S/4HANA has for lines of business and IT teams
  • Hear directly from an SAP S/4HANA early adopter on how the company planned for and implemented SAP S/4HANA, the challenges they faced, and the business outcomes

Admission is FREE for select customers and seating is limited.   ApplytoAttend

 

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Compliance is Not a Sprint; It’s a Marathon.  Your Strategy Needs to Go the Distance

Fri, Sep 7, 2018 @ 06:30 AM / by David Fellers posted in CEO perspective

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Over recent years, companies throughout the world are experiencing a series of major changes in regulatory and compliance mandates that are disrupting existing accounting and business processes. 

Implementing new revenue recognition standards (ASC 606 and IFRS 15) has been the key emphasis during the run up to the January 2018 deadline.  Now, lease accounting (ASC 842 and IFRS 16) has taken the main spotlight with less than four months until the January 2019 compliance deadline.

There’s nothing like some hard deadlines to help focus our minds and energy, however for the sake of your company’s future, it’s important to not see these dates as short-term finish lines.  Instead, these deadlines on the calendar are actually just milestones in the longer run toward a culture of sustainable compliance that is woven into the core fabric of your . Taking the long view also enables companies to institute a Comply, Optimize and Transform strategic approach that leverages analytics and data integration to turn compliance into a competitive advantage.

In short, compliance is not a sprint.  It is a marathon and you need to view it as such.

You can’t just treat compliance as a short all-out sprint in your street clothes, after which everything goes back to normal.  This approach will just leave you and your organization exhausted and still well short of achieving important long-term compliance integration goals.

 StartingLine

 

For example, it is way too soon to breathe a sigh of relief and declare victory over revenue recognition. Although new standards were effective on January 1, 2018 for most public companies with calendar year-end closing, the mandated disclosure and reporting requirements are continuing to drive ongoing ripples of change throughout most organizations.

Those long-run minded companies that invested in purpose-built, comprehensive RevRec solutions, such as SAP Revenue Accounting and Reporting (RAR), have proactively laid the foundation for continuous compliance that enables tight integration with advanced analytics and core finance processes.

On the other hand, sprint-minded companies that focused instead on minimizing disruptions by using “solutions” such as offline spreadsheets or other non-integrated RevRec software are now facing even harder choices ahead.  This means that every quarterly or annual reporting cycle going forward will perpetuate the inherent hassles of their short-term thinking.  Instead of smoothly extracting the needed RevRec information directly from finance operations and keep a steady pace over the long run, CFOs and their staff in these companies find themselves running that same sprint over and over again.

Even some choices that seem safe in the short run can turn out to be dead ends. Take for example, companies running SAP ECC environments that opted to use SD RevRec in ECC as their quick road to revenue recognition compliance.  Now, as they look ahead to the future of SAP with S/4 HANA, these companies have discovered that SD RevRec will no longer be supported. Oops, dead end!

If you’re facing this specific challenge of how to get from SD RevRec to RAR supported in S/4 HANA, you should check out Bramasol’s upcoming webinar on September 20, 2018 titled “SD RevRec is Dead. What Now?”  Listen as our RevRec Center of Excellence experts talk about the right sequence – RAR first or S/4 first, or is it simultaneous. What are my data considerations and how can I ensure a smooth transition?

Viewed from the big picture, trying to run an endless series of sprints puts a lot more wear and tear on your organization when compared to setting out with a marathon strategy from the start and charting out a pace that considers all of the hills, obstacles, curves and straightaways that must be traversed to achieve your end goals.

But take heart; even if you started out with a sprinting mindset, with a good understanding of long-term compliance strategies and effective coaching from a knowledgeable partner that knows the terrain ahead, you can effectively shift to a well-planned long-term strategy built to keep on winning over the long run.

Marathon

 

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Webinar Video : SD RevRec is Dead.  Now What? Join Us to Find Out.

Tue, Sep 4, 2018 @ 07:56 AM / by Bramasol RevRec Team posted in revrec hot-tips, revenue recognition, ASC606, IFRS15

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With the deadline for implementing ASC 606 and IFRS 15 now behind us for most public companies, a lot of CFOs and accounting staff have breathed a sigh of relief. 

However, for those companies running SAP ECC who chose the short-cut of using SD RevRec, there are still some big challenges ahead.

Even some choices that seem safe in the short run can turn out to be dead ends.

Now, as companies that took the SD RevRec "short-cut" look ahead to the future of SAP with S/4 HANA, they are discovering that SD RevRec will no longer be supported. Oops, dead end!

If you’re facing this specific challenge of how to get from SD RevRec in ECC to RAR supported in S/4 HANA, you should watch Bramasol’s recorded webinar.

Titled “SD RevRec is Dead. What Now?” this webinar will provide a roadmap for moving from your soon-to-be-gone SD RevRec implementation to a more sustainable Revenue Accounting and Reporting (RAR) solution that is integrated with S/4 HANA.

Listen as our RevRec Center of Excellence experts talk about the right sequence – RAR first or S/4 first, or is it simultaneous. What are my data considerations and how can I ensure a smooth transition?

Click below to watch recorded webinar on Sep 20,2018.

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Note: All other webinar recordings  are made available to all if you were not able to attend the live session check our Resource Center

 

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New Webinar Video: Bramasol's "Secret Sauce" from RevRec Implementations

Tue, Aug 28, 2018 @ 07:09 AM / by Bramasol RevRec Team posted in revrec hot-tips

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RevRecReady-HotTip-12-1The video is now available of the most recent session in Bramasol's monthly series on Revenue Recognition. 

Recorded on August 22, 2018, "Revenue Accounting Implementation: Secret Sauce" provides a wide-ranging look at key lessons learned, best practices and implementation tips based on our industry leading track record of RevRec implementation. 

Hands-on experts from our Center of Excellence share their unique perspective on issues that have been encountered while working with more SAP RAR customers than any other consulting organization. 

As the recognized leader in SAP RAR and innovator of purpose-built solutions for rapid compliance, Bramasol has more experience than anyone else in the RevRec sector.

Think your RevRec requirements are unique? Do you wonder if you are really getting the right picture of your revenues or using SAP to maximum advantage? 

Watch this webinar video to hear what others are doing in their SAP RAR implementations.

Bramasol's Revenuw Accounting Implementation Recored Webinar Aug 2018Listen in as our experts answer participants' questions and drill down to explain how we have helped customers meet their revenue recognition requirements using Bramasol’s “secret sauce”. 

 Watch the Video: Revenue Accounting Implemenation "Secret Sauce"

 

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Watch how Bramasol played a vital role in hard transition from ASC605 to IFRS 15  for a Pioneer in electronic and design automation company

Thu, Aug 16, 2018 @ 06:01 AM / by Bramasol RevRec Team posted in SAP Revenue Accounting and Reporting, revenue recognition, IFRS15, ASC606, Customer Story

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A pioneer in electronic design and automation and with a presence in more than seven countries, our featured customer offers bundles of hardware, software, support & training to industrial customers. The Company was running ECC 6.0 with SD Revenue Recognition and was in the process of implementing SAP RAR 1.3 to support a mandated transition to IFRS 15. The project delivers a "hard" transition from ASC605 to IFRS 15, running RAR 1.3 SP02 for ten company codes around the world. The deployment includes a migration of 26000 in-flight contracts.

 

 

As the clear leaders in design and implementation of Revenue Recognition solutions, Bramasol was the natural choice. Bramasol took this task on "In flight" from another system integrator and provided, A group of assets- a dedicated team including A RAR Project Manager, A Solution Architect, RAR Consultants and Developers to have smooth transition and best solution. One of the challenges was to secure the organization's investment in the prior development work. As there is no ‘one size fits all’ approach to this complex scenario, Bramasol could limit the disruption of the integrator change caused to the customer.

Customer Story World pioneer in Electronic Design and AutomationPlease speak to us if you’re facing any transitional issues or implementation challenges, simply Request a demo. If you have a challenging or complex RevRec undertaking or just need the pioneer in SAP Revenue Accounting, do what the Fortune 500 do… Contact Bramasol

 

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New eBook: Transitioning to ASC 842 using the Portfolio Approach to Group Leases

Mon, Aug 13, 2018 @ 11:11 AM / by Bramasol Leasing Administration Team posted in Leasing-Hot-Tips, ASC 842

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LeaseAdministration-HotTipWith less than five months remaining until January 2019, when public companies have to comply with new leasing standards, ASC 842 and IFRS 16, your implementation plans should already be well underway.

Even if you haven't started yet, there is still a small window of time to have a successful Q1 2019 implementation to enable reporting 45 days after March 31, 2019 - but only if you proactively begin now.

This new eBook from Bramasol's leasing experts drills down for a detailed look at key issues and best practices regarding usage of the Portfolio Approach to implementation of the ASC 842 Lease Accounting Standard.

new ebook on Transitioning to ASC 842, using the Portfolio Approach to Group Leases

This is beneficial by grouping leases of assets in the same class that is comprised assets with similar lease terms and discount rates.An entity may apply the Portfolio Approach to a group of leases within an asset class when doing so does not materially change the financial statement presentation when compared to applying the individual lease methodology.

Key topics addressed in the eBook include:
  • When can an entity apply the Portfolio Approach under ASC 842
  • Application of the Portfolio Approach in determining the Lease Term
  • Application of the Portfolio Approach in the Incremental Borrowing Rate
  • Practical Considerations for the Implementation of Portfolio Approach at Your Company

 

Click below to download the ebook.

Download the eBook: Transitioning to ASC 842 using the Portfolio Approach to Group Leases

 

 

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Building Finance Innovation upon a strong Compliance Foundation

Sat, Aug 11, 2018 @ 04:43 PM / by David Fellers posted in CEO perspective, finance innovation

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We can all agree that any physical building needs to have a strong foundation to assure safety of the occupants and sufficient resilience to maintain structural integrity against external forces, such as wind, flood, earthquakes and other potentially damaging events.

StrongFoundationFor CFOs facing the challenges of dynamically changing regulatory requirements, establishing a strong Compliance Foundation is also vital for avoiding the risks of non-compliance, such as legal sanctions, while also ensuring adaptability for accommodating ongoing changes driven by both internal and external forces.

Some companies view new accounting standards as specific painful topics that need to be handled with ad hoc, standalone solutions.  The thinking behind this approach is to “limit the impacts” and minimize changes to other related financial and operational processes.

However, this line of thinking is inherently shortsighted.

Over years of helping many companies on their journeys to compliance with new standards such as ASC 606, IFRS 15, ASC 842, IFRS 16 and others, Bramasol’s experts have found that embracing the changes and making them an integral part of core financial operations is a much more effective and efficient approach. 

Rather than trying to limit the impacts of changing compliance regulations, forward-thinking companies proactively incorporate them as key elements in the central foundation for all related processes.

FoundationDetailAt Bramasol, we firmly believe that Compliance Innovation Empowers Overall Finance Innovation.

Every new compliance program and solution should be treated as an additional important building block to be tightly integrated into the underlying core foundation, and bound together using connective “mortar” such as comprehensive analytics, shared in-memory data sets, agile reporting, configurable dashboards, and built-in disclosure processes.

When deploying compliance solutions that should integrate seamlessly within comprehensive business processes, we always start by looking for solutions that are designed to work with core ERP and Finance systems.  For example, SAP Revenue Accounting and Reporting (RAR) is integrated with SAP FICO and has the flexibility to act as an agnostic engine for revenue recognition with other ERP environments. On the lease accounting front, SAP Contract and Lease Management provides a compliance solution that integrates across existing SAP platforms and directly accesses core data sets.  Looking forward, both of these solutions are designed to integrate with S/4HANA (on-premise or cloud) and Bramasol is proactively providing analytics and disclosure solutions to leverage these integration opportunities.

To help with rapid deployment while still maintaining tight integration, we’ve created purpose-built compliance and disclosure solutions, including our Rapid Leasing Compliance Solution and Rapid RevRecReady Compliance Solution.  Both solutions expedite the implementation process by leveraging pre-built capabilities while providing robust compliance coverage for the relevant regulations.

In keeping with the overall philosophy of building a solid and comprehensive Compliance Foundation, all our purpose-built solutions make use of core SAP Cloud Analytics and data sources, which minimizes duplication, enhances productivity and eliminates isolated pockets of data.

As illustrated below, by building all your compliance activities on a solid foundation of SAP S/4HANA, SAP Cloud Analytics and agile dashboard technologies, each pillar of compliance and finance innovation can be directly integrated with core processes and data.  This makes the entire structure more efficient and improves the coherence between various compliance efforts and ongoing operational activities.

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If you’d like to learn more about this approach to building a comprehensive Compliance Foundation, visit here to request a consultation.

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Join Bramasol at SAP Controlling Conference in San Diego, CA Sept. 17-20, 2018

Tue, Aug 7, 2018 @ 05:54 AM / by Bramasol Financial Transformation Team posted in FinancialTransformation-Hot-Tips, SAP Controlling, SAP Events, S4HANA

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FinancialTransformation-HotTipPlan ahead to join Bramasol and other SAP Professionals at SAP Controlling 2018 conference in San Diego, CA on September 17-20, 2018.

Attend detailed sessions on SAP management accounting including the latest functionality such as S/4HANA. Attendees include end-users, managers, Controllers, CFO's and consultants dealing with master data, transactions, configuration, and reporting for managers.

Conference tracks are grouped together by type of session, as follows:

CTA Controlling-1
  • SAP Reporting/SAP Planning
  • SAP Controlling
  • SAP Product Costing
  • SAP S/4HANA / SAP Material Ledger

Bramasol is proud to be a participating sponsor of SAP Controlling 2018 and we're looking forward to sharing our latest financial controlling and compliance solutions along with hands-on demos of our transformational analytics and S4HANA capabilities.

 

Click here to book a meeting with Bramasol experts at SAP Controlling 2018

 Join Bramasol at SAP Controlling conferance San Diego Sept 17-20 2018

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eBook - Real Estate Leases Accounting and Business Considerations for Implementation under ASC 842 / IFRS 16

Tue, Jul 31, 2018 @ 04:56 AM / by Bramasol Leasing Administration Team posted in ASC 842, IFRS16, Leasing Solution, RLCS, SAPLeaseAdmin

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In February 2016, the Financial Accounting Standards Board IgnitePossible-HotTip200x130

(FASB) issued Accounting Standards Update (ASU) 2016-02 (“ASC 842”) Leases, which provides new guidelines that change the accounting for leasing arrangements. The new leasing standard becomes effective in fiscal years beginning after December 15, 2018

The primary purpose of the standard is to address the current accounting treatment of operating leases which are deemed to be off balance sheet financing arrangements and are only disclosed via a company’s financial footnotes in the “Commitments and Contingencies” footnote. Upon the adoption of ASC 842, for every identified lease, companies will be required to create a lease liability calculated as the present value of the future fixed payments and a corresponding asset (“right of use” asset).

The right of use asset will be amortized over the life of the lease. The income statement will be impacted by a straight-line lease expense item that would essentially contain an interest component with the amortization of the asset being the plug-in order to achieve straight line lease expense over the life of the lease. One of the key challenges of adopting the new standard will be for companies to assess and apply the incremental borrowing rate applicable to them which will be used in the present value calculations for the capitalization of lease liability and right of use assets related to leases.

The new leases standard will significantly affect lessees and lessors in the real estate industry, including their considerations related to non-lease components, initial direct costs, and accounting for sale- leaseback transactions. In addition, real estate lessors will need to understand the standard’s broader implementation implications for lessees as well as the potential for changes in tenant behaviors.

eBook Real Estate Leases ASC842  IFRS16 TueTip

This eBook also addresses the three most common forms of real estate lease;

  • Net Leases or triple net lease,
  • Modified Gross or Base year Leases and
  • Gross Leases

Lessees and lessors are required to separate lease components and non-lease components (e.g., any services provided) in an arrangement and allocate the total transaction price to the individual components. Lessors would perform the allocation in accordance with the guidance in the new revenue recognition standard, and lessees would do so on a relative stand-alone-price basis (by using observable stand-alone prices or, if the prices are not observable, estimated stand-alone prices).

This eBook will help you explore different accounting treatment for property taxes and insurance, Variable Lease Payments, Initial Direct Costs, Sale-Leaseback Accounting, and at the end best part is Business Impact and Implementation Considerations.

Download the eBook now

As crunch time is here for ASC 842 and IFRS 16 compliance, Bramasol can still help you comply on-time. Ask us how!

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If You've Been Using SD RevRec for ASC 606, It Can't Last Much Longer

Tue, Jul 24, 2018 @ 09:46 AM / by Bramasol RevRec Team posted in revrec hot-tips

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RevRecReady-HotTip-12-1During the lead-up to implementation of the new Revenue Recognition standards, ASC 606 and IFRS 15, companies chose a variety of paths to get ready. 

In some cases, they took a long term view and implemented purpose-built solutions such as SAP Revenue Accounting and Reporting (RAR) to achieve compliance, while also laying the groundwork to optimize and transform their financial operations.

However, in some situations, companies simply tried to make as few changes as possible while cobbling together bare minimum compliance approaches.  One of these shortcuts used by companies running SAP was to try and squeeze compliance functionality out  of existing SAP SD Revenue Recognition functionality running in ECC environments.

From the outset, SD RevRec posed a number of shortcomings with regard to meeting the new requirements, including:

  1. No Multiple Element Arrangements: SD RevRec does not support allocation of transaction price, one of the fundamental steps for ASC 606 and IFRS 15. Revenue is always recognized separately for every SD order item according to its specific pricing conditions.
  2. Parallel Accounting: SD RevRec cannot manage different accounting principles, with makes it difficult to leverage automation and increases the effort needed for reconciliation by accounting teams.
  3. Cost Recognition: Cost of Goods Sold (COGS) is not reconciled with revenue recognized.  SD can only recognize cost at the time of PGI or billing, depending on set-up of the pricing scheme in SD.
  4. Disclosures and Reporting: Tranditional SD RevRec is not capable of meeting the new disclosure requirements for ASC 606 and IFRS 15.

SD RevRec tue-tip-24-JulDespite these limitations and the recommendations from SAP that customers transition to RAR, some companies managed to get by with SD RevRec for initial implementation of the new standards.

Unfortunately those companies are now facing another big hurdle in the near future because SD RevRec will no longer be supported as the SAP technology environment moves ahead to S/4HANA.  Current estimates indicate that SD RevRec will become dead-ended by the end of 2020.

SD-RevRec-Deadend

 

So, if your company is in this situation, what should you be doing now?

  1. The first step is to look at implementing SAP RAR as soon as possible.  If you have SAP, you already own the RAR solution as part of SAP FICO. Also RAR can be deployed as a RevRec engine for other ERP legacy environments.
  2. Consult your outside accountants and knowledgeable SAP consultants to define a pilot program running SAP RAR in parallel with existing methods.
  3. Look into leveraging a purpose-built fast-track approach such as Bramasol's Rapid RevRecReady Compliance Solution.

The most important issue is DO NOT WAIT!

The clock is ticking toward the end of SD RevRec and you're going to need a viable alternative in place!

 

Request RevRec Consulting Support

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New eBook: S/4HANA is the Future: Understanding Why and How to Get There Download Now
Download the eBook: Transitioning to ASC 842 using the Portfolio Approach to Group Leases

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