Finance & Controlling
What is Revenue Accounting and Reporting (RAR)?
SAP functionality for recognizing revenue under IFRS 15 and ASC 606 based on performance obligations.
RAR creates revenue accounting contracts from sales orders and billing, then allocates transaction prices. In S/4HANA it is integrated as SAP Revenue Accounting. Testing requires multi-element contract scenarios and period-end revenue postings.
Related terms
Billing Document
An SD document such as an invoice, credit memo, or debit memo that posts receivables and revenue to FI.
Financial Accounting
The SAP module for external accounting, covering general ledger, payables, receivables, assets, and banking.
Period-End Close
The set of tasks run at month, quarter, or year end to finalize accounting periods and produce reliable financial statements.
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