SUJAN CONTITECH AVS PVT LTD ​ SAP RAR Implementation

About Client

SCS is engaged in manufacturing of Anti-Vibration-Systems for Automobile uses. ​

Our Engagement​

Inteliwaves has been engaged with SCS . Inteliwaves is partner for Implementing Transforming and Supporting  SCS SAP S4 India​

Key Client Requirements

  • As per Incoterms agreed with customers, a sales transaction is said to be complete only when goods reached customer premises, until such time revenue cannot be recognised in books​
  • As per India Goods & Service Tax (GST) regulation, sales has taken place upon dispatch of goods and hence GST liability needs to be recognised at the time of dispatch of goods​
  • Revenue has to be recognized only when the “Delivery Obligation” is completed, i.e. customer provides a “Proof of Delivery” as per IAS 115​
  • Current SAP Solution is designed to recognize revenues on customer invoice generation and hence non-compliance to statutory audit requirements​
  • Reporting of Invoice wise POD confirmation & revenue recognition​

Our Approach

  • SAP Revenue Accounting and Reporting (RAR) is designed to fulfil this requirement. SAP RAR is add-on solution to SCS’s existing SAP S/4 HANA solution.​
  • SAP RAR 1.3 was implemented as an add-on to existing SAP S/4 HANA Solution of SCS &  integrated with SAP SD solution used for Sales Order, PGI and Invoicing process​
  • SAP RAR configured to process revenue for Performance Obligations (POBs) as required by SCS business, which is as follows:​
    • Customer confirms receipt of goods in their premises by way of acknowledging the proof of delivery​
    • SAP RAR will release revenue based on POBs completion​
  • Business rules for revenue recognition is configured using SAP Business Rule Framework Plus.​

Value Delivered by Inteliwaves​

  • SCS team has total control over revenue recognition based on POD confirmation received from customer​
  • Visibility of deliveries acknowledged and not acknowledged by customer, in case of delayed confirmation follow up with transporter/ customer can be initiated​
  • All the RAR steps (except POD Entry) were automated to ensure zero change management impact​
  • Statutory compliance achieved for GST regulations as well as IAS 115​
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Customer Segment
Mid-Market
Use Case
SAP, SAP S4 HANA
Industry
Automotive
Services Used
SAP Revenue Accounting & Reporting (RAR)

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