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SAP RAR Process Flow

The document outlines the SAP RAR process flow, detailing the steps from source systems to reporting and compliance. It includes the integration of sales, billing, and finance data, the management of revenue contracts, and the application of revenue recognition rules. The final steps involve posting revenue to the General Ledger and generating reports for audit and compliance purposes.

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Moorthy Esakky
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256 views1 page

SAP RAR Process Flow

The document outlines the SAP RAR process flow, detailing the steps from source systems to reporting and compliance. It includes the integration of sales, billing, and finance data, the management of revenue contracts, and the application of revenue recognition rules. The final steps involve posting revenue to the General Ledger and generating reports for audit and compliance purposes.

Uploaded by

Moorthy Esakky
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

SAP RAR (Revenue Accounting and Reporting) -

Process Flow
+------------------+ +--------------------+ +-------------------------+
| Source Systems | --> | RAR Integration | --> | Revenue Accounting |
| (SD, FI, CRM) | | Component (RIC) | | Contracts & POB Mgmt |
+------------------+ +--------------------+ +-------------------------+
|
v
+----------------------------+
| Performance Obligations |
| Identification & Allocation|
+----------------------------+
|
v
+----------------------------+
| Revenue Recognition Rules |
| (IFRS 15 / ASC 606 Logic) |
+----------------------------+
|
v
+----------------------------+
| Revenue Postings to GL |
| (FI-GL / CO Integration) |
+----------------------------+
|
v
+----------------------------+
| Reporting & Disclosure |
| (Audit & Compliance) |
+----------------------------+

S. No. Step Description

1 Source Systems Sales, billing, and finance data from SAP SD, FI, CRM, etc.

2 RAR Integration Component Converts source data into RAR-compatible format

3 Revenue Contract Management Groups sales orders/invoices into revenue contracts

4 Performance Obligation (POB) Identifies what must be delivered (product/service)

5 Revenue Allocation Allocates total contract value to individual POBs

6 Recognition Engine Applies rules to recognize revenue over time or upon delivery

7 Accounting Integration Posts revenue entries into General Ledger (FI)

8 Reporting & Compliance Provides reports for audit, compliance, and financial statements

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