Subscription Billing and Revenue Recognition Optimization through SAP Billing and Revenue Innovation Management
DOI:
https://doi.org/10.63282/3050-9246.IJETCSIT-V5I2P124Keywords:
SAP BRIM, Subscription Billing, IFRS 15, Revenue Recognition, Digital Accounting, Financial Integration, ReconciliationAbstract
Using subscription services is the way business models have transformed the system of making revenues because it generates a recurrent payment scheme, price revenue, varying the conditions of the contract, package of the services and relations with the client. These characteristics create operational and accounting issues, which involve the accuracy of billing, contract interpretation, allocation of revenues, when to recognize revenue, reconciliation and financial reporting. The literature examines the effects of IFRS 15, digital transformation, cloud accounting, continuous accounting, and subscription-based types of business models, but these lines of literature stream do not provide detailed guidelines on how to align the actions in subscription billing with the business operations of contract-based revenue recognition in an enterprise system. The current paper will suggest a conceptual framework to use subscription billing and improve revenue recognition with the help of the SAP Billing and Revenue Innovation Management (BRIM) as the enterprise process context. The framework incorporates subscription lifecycle management, usage mediation, rating and billing, interpretation of contract, performance-obligation mapping, revenue scheduling, part of accounting, reconciliation, as well as compliance monitoring. Its design associates the happenings of usage with accounting choices basing on traceable data affiliation and customizable guidelines and exception management and governance directives. Evidence based appraisal would think about its idea, practicability, accounting practicability and compliance and defined enterprise-system capability, rather than experimentation, based on existing literature and possibility. The paper will add to the integrated process architecture, information-flow control model and literature derived approach to assessment. It is only a research proposal, not empirical research with its proven implementation and efficacy of the framework, which will have to be established in a subsequent study.
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