Get Informed About IFRS 15 SAP Revenue Accounting and Reporting 1.2
Time is flying and the deadline for adhering to the new IFRS 15 / ASC 606 finance standard is getting closer and closer, January 2018 is not far away.
If you are implementing SAP Revenue Accounting and Reporting, the SAP add-on solution which automates the revenue recognition and accounting processes, you are welcome to register for two live webinars called MTE (Meet-The-Expert ). These webinars provided by the SAP Enterprise Support Academy address two strategic topics:
- IFRS 15: SAP Revenue Accounting and Reporting 1.2 – Integration with Cost Object Controlling
- IFRS 15: SAP Revenue Accounting and Reporting 1.2 – Migration and Transition Overview.
These two MTEs are available for customers who have SAP Enterprise Support as an SAP maintenance agreement:
SAP RAR Integration with Cost Object Controlling scheduled on March 1st, 2017
- Cost Object Controlling is a powerful SAP component which is designed to provide real-time cost management functions and is integrated with most SAP components.
- For instance, Cost Object per Sales Order will determine costs and revenues in both planned and actual data. Cost Object Controlling includes the period-end functionality called Result Analysis (RA).
- Depending on the business scenario, Result Analysis (RA) can be performed for a sales order, work breakdown structure (WBS) element, or internal order as a cost object.
- With RA the revenue calculated in revenue accounting for controlling objects can be transferred to RAR as a percentage of completion (PoC).
- There are two possible integration scenarios between RAR and RA which are described in the diagram below.
SAP RAR Migration and Transition scheduled on March 8th, 2017
- The transition to IFRS 15 is a complex and critical phase of an RAR implementation. This phase includes the migration phase which is smaller compared to the overall transition phase to IFRS 15.
- The transition phase is a recurring complex topic for SAP customers, where solution capabilities vary based on the business scenarios. SAP guidelines are recommended.
- Initial questions to be addressed are:
- which transition methods will be chosen (full retrospective, modified retrospective with or without pro-forma reporting)
- which comparative methods and user cases will be chosen (e.g. the customer already uses RAR, uses RAR for both old and new standard during the comparative period, volume of the migration.…).
Any idea how a manufacturing company with warranty have to deal with this change ? Also how can the cost of warranty be provided ?
I suggest that you reach out to your finance auditors to discuss IFRS 15 impacts related to warranty based on your specific processes.