Every company needs to track and report revenue and it rarely is an easy process.
But it really doesn't have to be unnecessarily complicated.
The newly released SAP Revenue Accounting and Reporting application now offers a simplied path forward that both meets the specific mandates in the new FASB and IASB accounting standards and provides enhanced management capabilities for generic or company-specific revenue recognition across various accounting principles.
SAP Revenue Accounting and Reporting was developed closely with customers and co-innovators like Bramasol, as well as SAP’s internal accounting department, by analyzing the standard and assessing how best to design an integrated solution to cover the new requirements.
Customers running the SAP ERP Financials solutions that have current maintenance agreements will have access to the new application at no charge. It is also available to customers deploying the SAP Simple Finance solution. SAP Revenue Accounting and Reporting can also handle multiple accounting standards, offering additional flexibility to customers.
The overall result is an application that automates the revenue recognition and accounting process and simplifies the tasks for revenue accountants in following the new accounting guidelines, structured into five specific steps for simplicity.
SAP Revenue Accounting and Reporting manages revenue recognition from a finance point of view. It decouples operational transactions from accounting so that various operational transactions can be accounted together no matter where the operational data is processed.
The main requirement tackled by the new application is the management and processing of multiple element arrangements. With SAP Revenue Accounting and Reporting, it is possible to automatically determine these multiple element arrangements from an accounting perspective based on a flexible rules framework. Additionally, accountants have the ability to change how revenues are allocated and recognized manually based on given customer arrangements.
The application can deal with multiple accounting principles and their specifics in revenue recognition and presentation for one region or for each operational document. It also provides analytics for revenue accounting to address legal disclosures and management reporting.
Over the next two years, the new standard for revenue recognition means big changes for companies the world over, that must make significant updates to very sensitive systems,SAP Revenue Accounting and Reporting will help customers affected by this required update to effectively manage the transition.
If you'd like to learn more about how the new SAP application can be leveraged to meet the specific needs of your company, please click below to contact us for a free consultation.
