SAP RAR is designed to fit the accounting standards ASC606 and IFRS15. Variable consideration is one the most important concept. Could you please let me know any integrated solution offered by SAP RAR for the following scenarios.
Scenario 1: significant financing component.
When adjusting the promised amount of consideration for a significant financing component, an entity shall use the discount rate that would be reflected in a separate financing transaction between the entity and its customer at contract inception.
Scenario 2: Holdback of sales revenue.
For holdback scnearios like discounts, credits, rebates, penalties, sales returns, refunds, price concessions etc, how to manage the probability of holdback situtation and its accounting simutanously.
Highly appreciated that you can suggest a general idea and we can discuss with more details if needed.