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Sender systems can transfer revenue accounting items that do not contain a
quantity and do not contain an amount.
Revenue Accounting determines quantities and amounts when it processes
revenue accounting items.

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Please note that consumption based revenue recognition based on
estimations provides an optional approach according to IFRS15 for this type of
performance obligations.
Since interpretations and observations are still ongoing in the Transition
Resource Group for Revenue Recognition (TRG) practical expedients might
arise that allow avoiding this complexity.
For further perspectives you may want to consider available analysis from
various auditing companies such as PWC, E&Y, Deloitte or others such as
e.g.: http://www.pwc.com/us/en/cfodirect/assets/pdf/in-transition/us-2015-06-
revenue-implementation-variable-consideration-transition.pdf

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With SAP Revenue Accounting and Reporting 1.1 the operational sender
systems can now deliver revenue accounting items (Order item RAIs) that
contain no value for quantity and amount.
Quantities and average price per unit can be enriched in the adapter reuse
layer when processing the order item RAIs. Therefore rules for assigning an
estimated quantity / average unit price can be established in BRFplus based
on the result of analytical evaluations on customer usage.
Note: These analytical evaluations are not done in the BRFplus rule in
Revenue Accounting, the rule and assigned decision table can only receive the
result of such an evaluation as estimation.
Note: Up to now the adapter reuse layer has never adapted the total
transaction price of a performance obligation. With these estimated quantities /
prices, the adapter reuse layer allows the adaptation of the transaction price
for RAIs representing a usage-based order item.

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In the following example from SAP hybris Billing, invoicing (aka SAP
Convergent Invoicing) order item RAIs have been delivered to the adapter
reuse layer that are usage based and thus contain 0 in the quantity and
amount fields.
The indicator Estimate Quantity is set in order to use the estimation
feature in BRFplus when processing the RAIs and transform them into
performance obligations.

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After RAI processing the operational data has been enriched and transformed
in BRFplus:
1. New function FC_RAI_EST_QUAN_DET derived the estimated quantity and
average unit price. In this example this is a quantity of 2.500 units.
2. Function FC_PROCESS_POB defined the performance obligation with
fulfillment type Event-Based and the new event type Consumption.
3. Also the SSP per unit has been assigned in function FC_PROCESS_SSP and
defined with calculation type Quantity. Hence the total SSP for this service
performance obligation has been calculated SSP * estimated quantity. In this
example this is a quantity of 2.500 units * Unit SSP of 0,05 EUR = 125,00 EUR for
the total SSP.
4. The revenue schedule shows an unscheduled recognition period in the future
over the entire quantity / amount of the performance obligation as for the timing of
the recognizing revenue it depends on the fulfillment notification by the
operational system.

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The screenshot shows an example on fulfillment RAIs notified by an
operational sender system with the information on the consumed number of
units.
Processing of the fulfillment RAIs updates the performance obligation
with respect to the fulfilled quantity, and the revenue schedule.

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The consumption based performance obligation has been updated with the
fulfilled (consumed) quantity and the revenue schedule has been split into a
fulfilled line for which revenue is recognized and a second line with the rest of
the unfulfilled quantity.
In this example this a recognized revenue of 4,38 EUR as a result of Total
Allocated amount of 109,43 * 100 SMS consumed / 2.500 Estimated Quantity.

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The screenshot shows an example on invoice RAIs notified by an operational
sender system SAP hybris Billing (aka BRIM) with the information on the
invoiced amounts per performance obligation.
Invoice handling for consumption based performance obligation works as
for other performance obligation types.
With the final invoice indicated in the invoice item RAIs, the Revenue
Accounting system executes a comparison of the contractual amounts at
contract inception with the total invoiced amounts and re-allocates the
revenues if necessary as well as creates adjustment postings.

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While the sample screenshots in the earlier slides show data delivered by the
integrated SAP hybris Billing (BRIM) solution the consumption based revenue
recognition based on estimations can be used by any operational sender
system if required.
The currently implemented approach on revenue recognition for consumed
units considers quantities and calculates the recognized revenue based on the
underlying the allocated unit price.
Capabilities for a periodical assessment based on the invoiced quantities and
real amounts in order to true-up the estimated performance obligations with re-
allocation and revenue adjustment is not delivered with SAP Revenue
Accounting and Reporting 1.1 but in the backlog for a future release.

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