This document is a guide to configuring and using SAP Revenue Accounting and Reporting (RAR) in compliance with IFRS15 standards for sales revenue reporting. It focuses on the integration between SAP Sales and Distribution (SD) and SAP RAR modules to enable accurate and timely revenue recognition based on the five-step model defined in IFRS15. This document details the configuration of relevant system components, master data setup, flow of actual revenue data, and user-end processes within SAP RAR.
Key SAP RAR related steps covered in the document are:
- System Integration and Basic Settings
- Integrate with Revenue Accounting and Reporting:
- Configure RFC Destination for SAP RAR
- Maintain Revenue Accounting Item Settings
- Maintain Sales Organizations, Sales Document types, and Sales Item categories to be relevant for RAR Processing.
- Define Revenue Accounting Item Classes and Interfaces
- Configure and generate interfaces for Revenue Accounting Item Classes (e.g., SD01, SD02, SD03).
- Define Source Document Item Types
- Assign BRF+ Application for SD Revenue Accounting Item Classes
- Maintain Condition Type for Stand Alone Selling Price (SSP)
- Specify condition type (ZSSP) as the key determiner of stand alone selling price.
- BRF+ Settings Configuration
- Define structures used in BRF+ functions
- Define and assign Decision Table IDs for the configured applications in BRF+
- Accounting Principle Specific Settings
- Define settings for IFRS or GAAP accounting principles.
- Assign company codes to accounting principles.
- Maintain Legacy Data Transfer date and migration status.
- Maintain Open Revenue accounting periods
- Maintain Number Ranges
- Define Number Ranges for Revenue Accounting Contracts, Performance Obligations, and Run IDs
- Contract and Performance Obligation Types
- Define Contract categories
- Define Performance Obligation Types (e.g., ZMAINTAINC for time-based, ZGOODSISSU for event-based).
- BRF+ Application Settings
- Performance Obligation Determination (BRF+):
- Maintain decision tables to determine POB types based on material type and other criteria.
- (Example: Time-based POB “ZMAINTAINC” for service items, and event-based “ZGOODSISSU” for physical goods)
- GL Account Determination (BRF+):
- Maintain decision tables for mapping GL accounts for revenue postings.
- (Examples: Recognized Revenue 410020, Contract Liability 290110, Contract Asset 121100)
- End-User Processes and Scenarios Non-Bundled Sales: Process sales orders, perform invoicing, process Revenue Accounting items using FARR_RAI_MON, transfer revenue using FARR_REV_TRANSFER , calculate liabilities and assets using FARR_LIABILITY_CALC, and post revenue using FARR_REV_POST. * Revenue recognition over the contract period for items such as service. * Reversal of original sales revenue and posting to liability and revenue accounts
- Bundled Sales:
- Process sales orders with multiple items (stock and service), perform goods issue, and generate invoices, perform Revenue Accounting item processing using FARR_RAI_MON, transfer revenue using FARR_REV_TRANSFER, calculate liabilities and assets using FARR_LIABILITY_CALC, and post revenue using FARR_REV_POST. Revenue recognition at point of goods issue for physical goods, and time based revenue recognition for warranty items.
- Reversal of original sales revenue and posting to liability and revenue accounts
- Bundled Sales with Billing Plans:
- Similar to bundled sales but with monthly billing for the service portion
- Process sales orders with multiple items (stock and service), perform goods issue, and generate invoices, perform Revenue Accounting item processing using FARR_RAI_MON, transfer revenue using FARR_REV_TRANSFER, calculate liabilities and assets using FARR_LIABILITY_CALC, and post revenue using FARR_REV_POST .
- Contract Asset / Unbilled Receivables for timing differences between the billing and revenue recognition.
- Reversal of original sales revenue and posting to liability and revenue accounts
This document contains step-by-step configuration procedure, including SAP transaction codes, with setup guidelines for master data and steps for customizing configurations. It ensures the integration of SAP RAR with SAP SD and relevant financial accounting modules. It supports revenue reporting compliant with IFRS15 regulations, where the document highlights the five-step model and the correct use of Performance Obligations, Stand Alone Selling Prices, Contract Liabilities and Contract Assets in the accounting process.