SAP Revenue RecognitionSAP Revenue Recognition
Eliminating Manual Processes with
SAP Revenue Recognition
SAP Revenue Recognition comes with built-in features such as real time reporting and dual guidance which allows businesses to identify and mitigate risks, minimising the need for manual inputs and streamlines complex accounting processes.
About SAP Revenue Recognition
SAP developed the Revenue Recognition solution to combat the challenges posed by ASC 606 and IFR 15. The up-to-date solution has proven to be extremely popular for companies who have merged existing systems and mass data into a centralised platform that delivers real-time GAAP, as the solution can easily automate the five steps of ASC 606.
Key Benefits of using Revenue Recognition
Accelerate close cycle
Minimises overall time required for the financial close cycle, while providing accurate rule-based revenue recognition and cost accounting.
Simplified accounting policies
Allows businesses to leverage real-time disclosure reports and users can benefit from configurable accounting policies.
Automate ASC 606 and IFRS 15 accounting
Access advanced revenue recognition and reporting to create configurable and real-time
disclosure reports.
The Five Steps of ASC 606 and Real-Time Disclosure Reporting
1. Identify valuable contracts
Uses existing systems to identify revenue contracts through system configuration.
2. Recognise performance responsibilities
Features automatically identify contract performance obligation.
3. Get the transaction price fixed
Estimates the monetary value of all your variables across contracts.
4. Distribute transaction price to perform obligations
Automates revenue through various modes such as historical data, cost, customer type etc.
5. Automate Revenue recognition
Real-time visibility on revenue waterfalls and liability account balances with configurable reports.
