When Finance finally sees the revenue numbers from the IT-built RAR system 😱 (And they don’t match… again.)

Ahem..!

We’ve been part of several SAP Revenue Accounting and Reporting (RAR) implementations — across industries, regions, and complexity levels.

One pattern we see over and over again:
The project struggles — or fails — when IT leads without strong Finance ownership.

Not because the tech is broken.
Not because the config is wrong.
But because the wrong team is driving the project.

Here’s how it usually goes wrong — and what to do about it.

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1. It’s Not Just Another IT Build

SAP RAR isn’t a backend system or a tech layer.
It’s a revenue compliance engine.

That means it should be led by Finance — not IT.

When IT drives the project, things are built around technical design, not compliance rules. The result? Systems that run fine, but don’t reconcile with actual revenue policies.

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2. IT Over-Engineers, But Finance Needs Simplicity

We’ve seen Complex configurations/logic and customizations may look good in the system, but they are usually unreadable, unclear, and unownable by the finance team.

Finance doesn’t want complexity. They want:

• Clear POB mapping/revenue recognition rules

• Rules that make sense from accounting/complaince perspective

• Audit-ready documentation

• Reconciliations that actually tie

If Finance can’t understand or adjust the setup, they won’t own it. And that’s a problem.

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3. RAR Runs on Closing Cycles — Not Dev Sprints

RAR is tied to financial close: month-end, quarter-end, year-end.

Those timelines don’t shift. They’re not optional.

But when IT runs the show, features get pushed to “later sprint.” Finance is left with gaps during close, and that’s when trust in the system collapses.

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4. No Finance Ownership = No Trust in Numbers!

If Finance cannot interpret how revenue is calculated and posted, they won’t trust it.

That usually leads to:

• Manual Excel workarounds

• Duplicate effort

• Delayed closes

• Finger-pointing between teams

When ownership is missing, trust goes out the window.

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5. Unit Test ≠ Mock Close

IT validates if the config runs.
Finance needs to validate if the numbers are right.

That means doing a real mock close — full data, full contract scenarios, real posting simulations. Without that, the first “test” ends up being Production.

And that’s risky.

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6. What Actually Works

The best RAR projects we’ve seen? Simple structure:

• Finance defines the rules

• IT enables them

• Both teams are aligned on timing and outcomes

Everyone knows what success looks like. And revenue gets posted right — on time, every time.

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Final Thoughts

SAP RAR is too important to be treated like another config-heavy IT project.

It impacts:

• Revenue reporting

• Audit trails

• Compliance deadlines

• Executive confidence

If you’re starting or optimizing RAR, start with the right ownership model:

• Let Finance lead

• Let IT enable

• Align around close dates, clarity, and compliance

That’s the difference between just “going live” and actually being ready.

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Questions? Seen this happen in your own projects?
Drop a comment or message — happy to compare notes.

#SAPRAR #S4HANA #IFRS15 #ASC606 #RevenueRecognition #SAPFinance #FinanceFirst #SAPProjects

✍️This post was created with the help of an AI assistant — the content come from lived project experience, the writing just got a little extra polish.