The Road to Revenue Recognition

with SAP Service and Support

Summary

Implementation Scenarios

The new accounting standard, IFRS 15, will

supersede virtually all revenue recognition
requirements in IFRS and US GAAP. As a
result, IFRS 15 will likely affect financial
statements, business processes and
internal control over financial reporting of
many organizations.

Achieving IFRS 15 compliance depends on the complexity of billing systems, contract

volume, current landscape and revenue recognition approach.
Depending on each company, the path to implement SAP RAR can be achieved within
one of these three buckets:
Low Transaction Volume
and Landscape Complexity

Average Transaction Volume

and Landscape Complexity

High Transaction Volume

and Landscape Complexity

Source Systems

Source Systems

Source Systems

All companies (public and private) will

be required to prepare their revenue
contracts now to comply with this new
regulation by 2018.

AIF

Objectives
Allocate revenue based on goods
vs. services
Fill in the gaps to address multielement arrangements
Drive consistency in reporting
revenue on a global scale

Solution
SAP provides best-in-class solutions
to manage the revenue recognition
processes, supporting all major regions
and industries. As the core solution,
SAP Revenue Accounting and Reporting
(SAP RAR) provides advanced capabilities
while ensuring multi-GAAP compliance.
The road to become IFRS compliant
depends on each individual company.
An early assessment is key to managing
implementation.

AIF

(optional)

(recommended)

SAP DATA HUB

SAP DATA HUB

SAP DATA HUB

Optional: Unlocks
high-volume scenario

Optional: Unlocks
high-volume scenario

Optional: Unlocks
high-volume scenario

S/4HANA or ECC6 / EhP5

S/4HANA (recommended)
or ECC6 - EhP5

S/4HANA or ECC6 / EhP5

RAR

CD

RAR

for Portfolio Approach

CD

RAR

for Portfolio Approach

CD
for Portfolio Approach

Services Road Map

The path to revenue recognition is organized in 7 steps, on premise and in the cloud,
supported by the SAP Service and Support organization.
1

Read and
understand the
new regulation

Map the
new regulation
to the business

Analyze the
impacts to
the business

Redefine
business
and rules

Define
transition to
New Revenue
Recognition

Align Rev Acc

Project with
project portfolio

Implementation
of SAP Revenue
Accounting

Get to an IFRS-ready state, leverage a state-of-the-art platform and unlock high-value

scenarios to provide a new level of customer insights and engagement.

Learn More
Contact your SAP Service and Support representative to get started.
To learn more visit: http://go.sap.com/product/financial-mgmt/revenue-recognition.html

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