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