Sreten Milosavljevi¿ has worked as a senior SAP finance consultant for the past 20 years. Thanks to the perfect storm of IFRS 9, IFRS 15, and IFRS 16, since 2016, his primary focus has been working with revenue accounting and reporting and contract lifecycle management. During this time, he gained experience with most of the industries that are impacted by the implementation of either IFRS 15 or ASC 606, including telecommunications, healthcare, manufacturing, and high-tech. Sreten is currently involved in solving complex topics for a variety of customers, especially concerning integration points between different systems.

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... Preface ... 13

... How This Book Is Organized ... 13

... Acknowledgments ... 15

... Conclusion ... 15

1 ... Introduction to Revenue Recognition ... 17

1.1 ... What Is Revenue Recognition? ... 18

1.2 ... Five-Step Model of IFRS 15 ... 19

1.3 ... Industry Impact ... 32

1.4 ... Revenue Recognition and SAP ... 46

1.5 ... Summary ... 52

2 ... Designing Your Revenue Recognition Landscape ... 55

2.1 ... The SAP Landscape and Revenue Recognition ... 55

2.2 ... Integration with Different SAP Components ... 61

2.3 ... Revenue Recognition Data Model ... 70

2.4 ... Choosing Your Revenue Recognition Tool ... 110

2.5 ... Summary ... 115

3 ... Configuring Inbound Processing (Classic and Optimized) ... 117

3.1 ... Setting Up Revenue Accounting Integration ... 118

3.2 ... Inbound Processing ... 122

3.3 ... Extending RAI Classes ... 138

3.4 ... Summary ... 140

4 ... Revenue Accounting Items ... 141

4.1 ... Processing Revenue Accounting Items ... 141

4.2 ... Managing Revenue Accounting Items ... 161

4.3 ... Extending Transaction FARR_RAI_MON ... 166

4.4 ... Error Resolution While Creating Revenue Accounting Items ... 168

4.5 ... Business Rules Framework Plus ... 177

4.6 ... Creating Custom Revenue Accounting Items ... 185

4.7 ... Summary ... 211

5 ... Contract Management ... 213

5.1 ... Setting Up Contract Management ... 213

5.2 ... Setting Up Performance Obligations ... 236

5.3 ... Managing Performance Obligations and Event Types ... 252

5.4 ... Modifying Contracts ... 277

5.5 ... Handling Price Allocations ... 299

5.6 ... Summary ... 301

6 ... Revenue Posting and Reporting ... 303

6.1 ... Basics of Reporting and Calculations ... 303

6.2 ... Posting with ABC ... 327

6.3 ... Integrating with Profitability Analysis ... 338

6.4 ... Reporting ... 341

6.5 ... Summary ... 363

7 ... Administration and Troubleshooting ... 365

7.1 ... Parallel Processing Framework and Performance Issues ... 366

7.2 ... Reclassification ... 383

7.3 ... Data Cleanup ... 392

7.4 ... Helpful Tips and Tricks ... 414

7.5 ... Summary ... 423

8 ... Migrating to Optimized Contract Management ... 425

8.1 ... Business Case for Migration ... 426

8.2 ... Preparation Activities for Migration ... 427

8.3 ... Performing the Migration ... 434

8.4 ... Post-Migration Cleanup ... 440

8.5 ... Summary ... 441

9 ... Event-Based Revenue Recognition ... 443

9.1 ... Solution Background ... 443

9.2 ... Sell-from-Stock Scenario ... 447

9.3 ... Sales-Oriented Scenario for Customer Projects ... 448

9.4 ... Revenue Recognition Keys ... 452

9.5 ... Summary ... 452

... Important Business Add-Ins ... 455

... The Authors ... 459

... Index ... 461