INDUSTRIES

High-Tech & Electronics

High-tech and electronics companies combine hardware with software, cloud services, support, and extended warranties. Many offer managed services, device-as-a-service, or leasing programs, often through channel partners and in high volumes across many countries.

Discuss Your Revenue Scenarios

Hardware Is Only Part of the Deal

This mix of products, services, and financing turns every customer contract into a revenue accounting decision.

Typical Challenges

• Hardware and software bundles: Devices with embedded or separate software, updates, and cloud services must be separated into performance obligations.

• Extended warranties and support: Service-type warranties and support plans are generally recognized over time, while hardware is typically recognized at a point in time.

• Leasing and managed services: Device leasing and managed print or device-as-a-service models require lessor accounting and separation of lease and non-lease components.

• Channel sales: Rebates, price protection, and returns affect the transaction price; principal-versus-agent assessments determine whether revenue is presented gross or net.

• High volume: Large numbers of contracts and transactions require automated, scalable processes.

• Harmonization: Groups with many local entities often need one consistent revenue accounting standard across countries.

Typical Scenarios

• Sale of hardware with extended warranty and support

• Device leasing with or without service, short- and long-term

• Managed services with a monthly fee per device or per usage

• Early termination or modification of lease contracts

• Channel sales with rebates and returns

• Software subscriptions and cloud services bundled with hardware

Typical SAP Products and Modules

• SAP Revenue Accounting and Reporting (RAR): allocation for hardware, software, and service bundles; deferral for warranties; lessor accounting for device leases

• SAP SD: sales orders, billing plans, and billing, including channel scenarios

• SAP Service Management: service contracts and warranties

• SAP Subscription Billing or SAP BRIM: recurring and usage-based billing for managed services

• SAP S/4HANA Finance: general ledger and harmonized accounting across entities

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