With the new Revenue Recognition standards (ASC 606 and IFRS 15) mandated for implementation by January 1, 2018, companies that haven't already started projects are falling dangerously behind. In fact, it's now too late to start a custom revenue recognition solution from scratch.
In a recent article in Compliance Week, Thack Brown, general manager and global head of line of business finance at SAP, put it this way. "CFOs are facing a perfect storm of accounting regulation, with three major IFRS standards converging in rapid succession, Time to implement these new processes is running out.”
“It takes approximately 18 months for the average Fortune 1000 company to make a change of this magnitude, and we just passed that point in the countdown to the mandatory effective date of the new standards, Corporate finance departments should act now to ensure that they are prepared for the transition and have the right tools to automate and simplify the process.”
That's why so many companies are turning to SAP Revenue Accounting and Reporting (RAR) to streamline their implementation and transition to the new standards.
New features in the SAP Revenue Accounting and Reporting 1.2 release include cost recognition, capitalized costs integration with project systems and results analysis from SAP, improved contract combination and modification capabilities, and integration with service and billing scenarios in the SAP Customer Relationship Management application, plus advanced features for transition to the new IFRS 15/ASC 606 accounting standards.
