Sujan Contitech AVS Pvt. Ltd. Successfully
Implements SAP Revenue Accounting and Reporting
About Client
Sujan Contitech AVS PVT LTD is engaged in the manufacturing of Anti-Vibration Systems for Automobile use.
Our Engagement
Inteliwaves has been engaged with Sujan Contitech AVS. Inteliwaves is the partner for implementing transforming and supporting Sujan Contitech AVS SAP S/4 India.
Key Challenges Faced by Client
- 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/4HANA solution.
- SAP RAR 1.3 was implemented as an add-on to existing SAP S/4HANA 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
- The SCS team has total control over revenue recognition based on POD confirmation received from a customer.
- Visibility of deliveries acknowledged and not acknowledged by a 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.
- Automated revenue recognition across multiple business scenarios
- Integrated RAR with SAP S/4HANA for seamless data flow
- Improved accuracy in revenue reporting and financial statements
- Provided flexibility to handle complex contract arrangements