SAP BRIM and SAP RAR - "powerful together"

SAP BRIM is a powerful tool to model subscription and usage based business processes. It can be easily applied to industries like telecom, logistics, Managed print services, digital publishing, video streaming, software, utilities, highway tolling services and more. It is applicable for all the high-volume consumption industries and utilized to simplify the complex billing and invoicing processes.

Can it be integrated with a tool where the revenue recognition, accounting and revenue reporting can be performed following the IFRS15 (USGAAP ASC-606) guidelines?

The answer is "Yay yay!!!"

SAP RAR is an extremely powerful tool based upon 5-step model of IFRS15.

SAP RAR is powered by three data types primarily:

1. Revenue Accounting Items
2. Fulfilment items
3. Invoice items

SAP FICA module of SAP BRIM integrates with SAP RAR once the same is activated in the settings as per the following:

1. Activate the business function FICA_EHP7_RA
2. Maintain the source system FICA in SPRO path - Revenue Accounting – Inbound Processing – Revenue Accounting Item Management – Define Sender Components
3. Activate the integration with Revenue Accounting and configure the RFC destination to the revenue accounting system in customizing for Contract Accounts Receivables and Payables.

Once the above business functions are activated, the configuration nodes related to Convergent Invoicing and FI-CA integration with SAP Revenue Accounting and Reporting will appear under Financial Accounting Contract Accounts Receivable and Payable – Integration.

Finally, the SAP Revenue Accounting and Reporting relevant interface must be activated for the corresponding billable item class.

The above are the high level steps and the detailed implementation varies per business process.

To summarize, SAP BRIM and SAP RAR can be integrated and we can have one robust system where we can manage the Subscription based and usage based business processes along with their right revenue recognition that follows IFRS 15 guidelines.

For details regarding IFRS 15 and the revenue accounting guidelines, please refer the links below:

https://www.dhirubhai.net/feed/update/urn:li:activity:6906342012363374592

https://www.dhirubhai.net/feed/update/urn:li:activity:6911454602768838656