Revenue Accounting (5VW)

The scope item enables you to manage revenue recognition according to IFRS 15 and ASC 606 following the five-step model.

Revenue contracts are created automatically for the corresponding operational orders. 

You can identify the performance obligations included in each revenue contract based on the items in the operational order. 

You can determine the total price and then allocating the total price among the performance obligations based on the standalone selling price. 

The revenue for performance obligations is recognized as they’re fulfilled over time. 

You calculate contract liability and contract asset values and make postings to the general ledger to reflect revenue-related recognition transactions.

Key Process Steps Covered

• Manage revenue contracts
• Process revenue contracts
• Perform periodic activities including transfer revenue, calculate contract liabilities and contract assets, and post revenue to the general ledger
• Shift revenue contracts to next period

Benefits

• Eliminate the need for manual processes through process automation and integration
• Support compliance to revenue accounting standard IFRS 15 and ASC 606
• Provide reconcilable contract management for revenue recognition

Where is Revenue Accounting(5VW) being used?

This Scope item is used in the following way:

• As a support function of Accounting and Financial Close within Finance Scope Item Group

• Best Practices of SAP S/4HANA On Premise *1
• Best Practices of SAP S/4HANA Cloud *2
• Best Practices of SAP Analytics Cloud *2
• Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

• RISE with SAP
• SAP S/4HANA Cloud
• SAP on Azure
• Business Process Management