INSIGHTS
Insights on SAP Finance, Leasing, and Agentic AI
Articles, regulatory updates, and a glossary on SAP revenue recognition, leasing, billing, and AI in SAP Finance.
LATEST ARTICLES
From the Blog
SAP RAR
Reconciling SAP RAR with the General Ledger
How to reconcile SAP RAR with the GL and operational systems: reconciliation reports, typical differences, direct posting, and SOX-ready controls.
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SAP RAR
Migrating Existing Contracts to SAP RAR
How to move in-flight contracts into SAP RAR: transfer date, migration status, operational load, initial load, validation, and switching to productive.
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RAR Support & AMS
Typical SAP RAR Support Tickets and Their Root Causes
The SAP RAR support tickets that come up again and again – from missing items and posting errors to blocked periods – and the root causes behind them.
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GLOSSARY
Key Terms Explained
Agentic AI
Agentic AI describes AI systems that pursue a defined goal by planning steps, using tools and data, and carrying out tasks with a degree of autonomy – rather than only answering questions.
AI
AI Agent
An AI agent is a software system that uses an AI model to pursue a goal by deciding on steps, using tools, and acting on the results – within limits set by its designers and users.
AI
Allocation
Allocation is step four of the five-step model: distributing the transaction price of a contract to its performance obligations, generally in proportion to their standalone selling prices.
Revenue Recognition
Annual Recurring Revenue (ARR)
Annual recurring revenue (ARR) is an operating metric that shows the annualized value of a company's active recurring contracts at a point in time. It is not defined in US GAAP, is not a GAAP measure, and is not the same as revenue recognized under ASC 606.
Billing
ASC 326 Credit Losses (CECL)
ASC 326 is the US GAAP standard for credit losses. It introduced the current expected credit loss (CECL) model through ASU 2016-13, requiring companies to estimate expected credit losses over the life of financial assets from initial recognition.
Related Standards
ASC 340-40 Contract Costs
ASC 340-40 Other Assets and Deferred Costs – Contracts with Customers governs the accounting for costs to obtain and costs to fulfill contracts with customers. It was introduced together with ASC 606. The IFRS equivalent is contained in IFRS 15.
Related Standards
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