SAP RAR Optimized Contract Management: Period End Activities & Reporting

[Jitakshi_Sarmah]

There are 3 period end closing activities in Revenue Accounting and Reporting (RAR). One can use Fiori apps, Programs or Transaction Codes to execute them. Below are the details -

Srl No.	Period End Activities	Programs	Transaction Code	Fiori Apps
1.	Transfer Revenue	FARR_REV_TRANSFER	FARR_REV_TRANSFER	Transfer Revenue
2.	Calculate Contract liabilities and Assets	FARR_CONTRACT_LIABILITY	FARR_LIABILITY_CALC	Calculate Contract liabilities and Assets
3.	Revenue Posting run	FARR_REVENUE_POSTING	FARR_REV_POST	Start Revenue Posting run

Use Case:

Contracts taken into account – 1000000501, 1000000301, 1000000300, 1000000200, 1000000103

Manually transaction in sequence will be executed starting from 1^st Transfer Revenue, 2^nd Calculate Contract Liabilities and Assets followed by 3^rd Revenue Posting Run. Once the revenue posting job completed successfully, system will post accounting document for all open contract for revenue recognition.

Executed Jobs can be checked in Fiori App – Revenue Job Posting Run

Step 1 – Transfer Revenue

This program calculates the revenue to be recognized for a subsequent revenue posting run. There are no accounting entries posted in this step.

Step 2 – Calculate Contract Liabilities and Assets

This program calculates contract liabilities and contract assets. There are no accounting entries posted in this step.

Step 3 – Revenue Posting Run

This program transfers revenue postings to the general ledger and other corresponding ledgers. Accounting entries are posted in this step in posting mode.

Simulation Mode-

We can check in simulation mode the entries and then move to posting mode.

Posting Mode

Revenue Job Posting Run

Fiori Apps for Reporting:

Reports are available which displays amounts, allocated amounts, posted revenue, invoiced amount, and others for contracts and performance obligations of each period. The items are clubbed under category such as Contract, Performance obligation type.

1. Posted Amount by Contract

2. Posted Amount - by Performance Obligation Type -

3. Revenue Accounting Overview -

Links for Previous Blog Posts on RAR Business Use Cases -

1. https://blogs.sap.com/2022/12/12/sap-rar-ocm-good-issue-time-based-fulfillment-business-use-case/


2. https://blogs.sap.com/2022/12/14/sap-rar-optimized-contract-management-customer-invoice-fulfillment-...


3. https://blogs.sap.com/2022/12/15/sap-rar-optimized-contract-management-proof-of-delivery-fulfillment...


4. https://blogs.sap.com/2022/12/15/sap-rar-optimized-contract-management-acceptance-date-manual-fulfil...


5. https://blogs.sap.com/2022/12/16/sap-rar-optimized-contract-management-intercompany-billing-based-fu...

This brings us to end of SAP RAR Optimized Contract Management Period End Activities & Reporting Blog. Hope you find this blog informative and helpful.

Thanks,

Jitakshi