In this advancing world oftechnology, we witness uncountable lines of logical codes being written day byday either to create new software or to make the existing one better and errorfree. Writing codes and getting errors are two key aspects of any softwaredevelopment and its successful execution. Being a software developer, my mainmotivation was to build smart and dynamic applications.
While doing myinternship, I came across a topic for creating a framework for automatedcontract correction for the revenue accounting. It basically relates tocreating a dynamic framework that can be used in order to fix error patternscaused either by migration of the legacy data or because of some human errors. The high complexity of revenue accounting andincreasing number of errors made this topic challenging. To see a biggerpicture of SAP and my framework, let us now deeply get into the World ofRevenue Accounting1.
1. About SAPSAP (Systems, Applications andProducts) is one of the largest business software companies founded in 1972 andheadquartered in Walldorf, Germany. The SAPis often considered to be a global head in the world of enterprise software. Its 45 years of run, SAP has introduced a widevariety of products for many industries, providing smartest solutions to best-run businesses.
The world witnessed its first Enterprise Resource Planning (ERP) Software productcalled SAP R/98 in 1973, built with an aim to have data stored centrally andperform multiple tasks in a common system. SAP introduced its second ERP in1979 which was a mainframe-based application software used by many largeEuropean multination companies. It was in 1992 when SAP saw its majorbreakthrough by launching its first version of SAP R/3 client-server versionwhich could be used for real-time data processing providing 3-tier architecture– database, server and a client.SAP then went on providingmany different versions of its R/3 product which also included many enhancementpackages for its central components. Then SAP NetWeaver came, which is a WebApplication Server which could provide individual J2EE services and ABAPservices or both. SAP also introduced an in-memory computing database calledSAP HANA which could easily run on very large data sets thereby providing thefastest ever real-time processing. There are many more module based productswhich SAP has produced and is still working on creating many more.
Only timecould tell how far SAP could go to provide and keep its Best Run forBusinesses.1.2.
Revenue Accounting andRecognitionRevenue Accounting and Recognition module were first announced in 2014 by SAP which could automate and simplifythe revenue recognition and accounting process. Now, what is revenuerecognition? Revenue Recognition is the process of recognizing income when a sales contract is fulfilled andthe ownership of goods/services are transferred from the seller to thecustomer.SAP introduced this product specifically to help businesses comply withnew statutory regulations for revenue recognition. It provides the flexibilityto support different revenue recognition methods as well as multi-elementscenarios. It also supports automation and simplifying standard recognitionprocesses by reducing errors and reducing auditing time, while ensuringcompliance.Revenue Recognition and Reporting was introduced as a separate modulebecause of the following reasons:1. Thetraditional Revenue Recognition failed to offer the allocation of transactionprice which does not comply with statutory regulations.
2. It hasfailed to manage different accounting principles thereby avoiding any scope ofparallel processing.3. The traditionalRevenue Recognition does not meet newIFRS disclosures.1.
3. Concept and MotivationThe recently found problems were discovered during the productive use ofthe Revenue accounting. The SAP isintensively running RA, due to which new issues wereencountered in this usage. Initially, the counts of known issues with theproduct were almost seven different error categories. However, by the first yearof the productive usage, the final errorcategory has increased up to eighteen. Most of the errors in SAP RevenueAccounting are considered to contractinconsistencies either solely within SAP RA or between SAPRA and SAP SD/FI.
There different teams members in Wolford, Shanghai and India mainly theproduction support team are focusing on solving the errors in the contract.These employees take one contract at a time and investigate the errors bymanual checking different tables. Every single day more and more error is beengenerated. These errors, depending on the error complexity, solving an errorpattern can take from around 5 minutes to 5 hours. And in a day there can bemore than 1000 new errors generated.
This motivated me to create a dynamicreport that can automate the error solving process.