Difference SAP Revenue Accounting and Reporting (RAR) and Event Based Revenue Recognition

[former_member1056964]

What is the difference between these 2 solution directions?

What are the limitations from SAP RAR and SAP EBRR?

[volkmar_zahn]

Hi Harald,

Revenue Accounting was mainly build around the IFRS 15 / ASC 606 financial reporting requirements. As such, it enables industries such as High-Tech and Telco. To support the accounting view different to the operational view (e.g. sales order, service contract etc.) a sophisticated revenue contract management is provided along the 5 step model of IFRS15. RAR integrates with multiple SAP solutions (SD, CRM, SAP Hybris Billing) and external customer systems based on APIs. It provides a high flexibility to enhance solution and is tailored as high volume solution for on premise (S/4HANA and ERP).

You can find EBRR in the controlling area of configuration. EBRR provides strong support for cost driven scenarios. EBRR calculates and posts real-time revenue and cost adjustment for sales orders, projects, service documents and provider contracts. It provides real-time matching of cost and revenue and includes market segment information for every revenue recognition posting. There are no reconciliation efforts necessary as data is stored in the same location (Universal Journal) and it provides a clear audit trail for each revenue recognition posting.

For details please refer to the following information.

Help Portal (Documentation)

• Revenue and Cost Accounting - Public Cloud Edition
• Revenue and Cost Accounting – Private Cloud Edition

Blogs

• An Introduction to Event-Based Revenue Recognition with Customer Projects in SAP S/4HANA...
• Financial Accounting for customer projects in SAP S/4HANA Cloud: Part 1 Real-time insigh...
• Financial Accounting for customer projects in SAP S/4HANA Cloud: Part 2 Enhanced activit...
• Financial Accounting for customer projects in SAP S/4HANA Cloud: Part 3 professional ser...
• Financial Accounting for service industry in SAP S/4HANA Cloud: Part 4 market segment re...
• Event-Based Revenue Recognition for Universal Parallel Accounting in SAP S/4HANA 2022
• Revenue Recognition Key Documentation: The Key to Understanding the Posting Logic of Eve...
• Financial Accounting for project-based sales in S/4HANA Cloud
• Margin Analysis 4 Sell from stock in S/4HANA

Release Information Note:

• 3214045 - Revenue Accounting and Reporting with SAP S/4HANA 2022: Release Information Note
• 3220122 - Event-Based Revenue Recognition with SAP S/4HANA 2022: Release Information Note

Rgds, Volkmar

[jitkaflasarova_01]

Dear Volkmar,

Could you confirm if our understaning is accurate that the EBRR for the Sell from Stock scenarios cannot be used for scheduling agreements? After reviewing the SAP Road Map, it appears that scheduling agreements are not even on the horizon for the next several periods. Any insights?

Thank you!

Jitka

[volkmar_zahn]

Hi Jitka,

The topic of the scheduling agreement and EBRR is almost a separate thread but let me try to answer.

It is correct that this is not a topic in our roadmap. To my understanding also none of the other revrec flavors such as Revenue Accounting or even the old and deprecated SD RevRec offered a special logic around scheduling agreements.

However, I wonder why we would have to consider scheduling agreements specifically in EBRR. To my understanding scheduling agreements are a logistical topic, aka when a good should be delivered. Revenue recognition then is done on the actual goods issue (for example) as an outcome of the scheduling agreement.

If possible you could share some more details around your expectations. If this is of more confidential nature you could also mail me under volkmar.zahn@sap.com.

Best regards,

Volkmar Zahn

S/4HANA Product Management - Finance

[jitkaflasarova_01]

Hi Volkmar,

Scheduling agreements are special sales document types DS (Outline agreements).

SAP Help says: "You can conduct revenue recognition for sales documents that are considered as orders (standard sales document type OR), returns (standard document type CBRE), credit memo requests (standard document type CR) and debit memo requests (standard document type DR). For more information about sales document types, see Sales Document Types."

Any insights would be welcome!