SAP RAR
SAP Revenue Accounting and Reporting (RAR) is SAP's revenue subledger for recognizing revenue under ASC 606 and IFRS 15. It separates revenue accounting from operational billing and posts revenue and contract balances to the general ledger.
SAP
Explanation
RAR receives revenue-relevant information from source systems – such as SAP SD, SAP BRIM, service management, or non-SAP applications – as revenue accounting items. From these, it creates revenue accounting contracts and performance obligations, determines standalone selling prices, allocates the transaction price, and recognizes revenue based on fulfillment events.
At period end, RAR calculates revenue, contract assets, and contract liabilities and transfers the postings to the general ledger. It supports parallel accounting principles, so one contract can be processed under US GAAP and IFRS at the same time.
Why It Matters
RAR is the core system for complex revenue arrangements in SAP: bundles, multi-element contracts, contract modifications, and subscriptions. With the right solution design, it can also handle lessor scenarios – including operating and finance leases bundled with equipment and service – without an additional leasing system. Operating leases are close to the standard; finance lease calculations, such as the split between interest and principal, require additional customer-specific logic.
Related Terms
Revenue Accounting Item · Revenue Accounting Contract · ASC 606 · Allocation · BRF+ · Contract Combination · Remaining Performance Obligation (RPO)
Related Articles
• SAP RAR Architecture: From Source Documents to Postings
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