As you may know, the IFRS 15 regulation (also referred to as ASC 606) impacts companies selling hardware and services bundled together and/or running long term projects via a contract with a customer. They need to report according to the new revenue recognition rules starting January 1st 2018. Getting all the consistent data and posting recognized revenues into the correct accounts according to the new rules is a real challenge.
Now the good news: on Monday, we released to early adopters the new version of our solution for IFRS 15 / ASC 606: SAP Revenue Accounting and Reporting 1.1, which includes enhancement in account determination, integration with SAP hybris Billing (formerly named Billing & Revenue Innovation Management = BRIM) and other key features. This add-on on SAP ERP Financials is included in the maintenance for SAP ERP customers. As good news comes in pairs, I am happy to announce that we plan to release our Quick-start implementation service for this solution in November. This fixed-price 2-week service will:
- Support your installation of SAP Revenue Accounting and Reporting
- Implement baseline scenarios for integration with Sales and Distribution (SD) and non-SD systems, covering contract creation, fulfillment and termination, invoice processing and revenue posting.
- Provide interface examples and key user knowledge transfer.
Using this service, you will start tackling IFRS 15 / ASC 606 challenges, identifying & refining business scenarios and planning your IT landscape & validation. So here is a strategic plan for your company to consider:
- Obtain advisory on this topic in Q3-Q4. For example, SAP Services has a dedicated Advisory service which includes 2 days on-site for an overview presentation and questionnaires and delivers high-level architecture and roadmap to compliance. Others companies including your auditor can assist.
- Have SAP Services perform this Quick-start implementation service in late Q4 or Q1 2016 (involving the team who will complete your implementation in the knowledge transfer).
- Have SAP Services or your preferred partner/SI/internal team complete your implementation according to your specific interfaces, data and use cases. We have just added specific content (questionnaires, agendas…) to our Design review service to cover Revenue Accounting and Reporting, so you can take advantage of it.
Sounds like a plan? To discuss how we can help you, you are welcome to get in touch with your SAP Services contact or me at email@example.com.