SAP’s Approach for Automating Revenue Management
One of the many business challenges facing finance teams today is Automated Revenue Management (ARM). This topic is not only a compliance challenge in the face of increased regulatory scrutiny, it is also an operational challenge, requiring many companies to allocate scarce accounting resources on the often-manual evaluation of sales contracts and other revenue documents.
While some industries have standard contract management processes that match well with operational and the accounting views, others do not. Add to this the changes in customer-facing revenue billing processes due to the increase of subscription-based businesses, and a significant divergence in how revenue recognition is handled across companies and industries is observed. As contracting volumes increase and service bundling becomes more common and complex, teams need a capable and flexible revenue management framework embedded in their processes.
With its various components, SAP offers an agile and flexible framework within the Intelligent Enterprise for customers tackling Automated Revenue Management (ARM). By integrating with third-party applications, optimizing closing, providing disclosures and reporting, and building transparency through Embedded Analytics, ARM helps to tackle your challenges while driving your innovation. In short, ARM helps Finance teams to meet compliance requirements, scale to support business volumes, and adapt to continuous change.
SAP sales teams and implementation partners are well equipped to help customers analyze their revenue recognition requirements and determine the best path forward utilizing ARM capabilities from SAP. SAP’s implementation partners have deep domain knowledge and use best practices such as fit-gap analysis and pilots to help ensure success with ARM.
If you what to learn more about how SAP can support your ARM initiatives, click here to read the whitepaper.