Strategic Goal

to modernize billing and revenue recognition processes by replacing legacy systems with an integrated SAP platform.

Challenges

The company encountered several challenges as part of its effort to modernize core financial operations:

  • Inflexible legacy billing system: The existing billing system could no longer support complex transaction-based billing tied to product catalogs hosted in Salesforce and Apttus CPQ.

  • Outdated revenue recognition: The revenue recognition process did not meet current IFRS 15 requirements, limiting compliance and financial reporting capabilities.

  • Disconnected usage billing and revenue data: Usage billing and revenue recognition needed to accurately reflect customer and partner installed bases maintained in front-end systems.

  • Complex migration requirements: Transitioning from legacy RevRec systems to SAP RAR required a carefully planned, structured, and thoroughly tested migration approach to avoid business disruption.

Solution

To overcome these challenges, the company partnered with CLARITY and deployed a comprehensive SAP financial transformation:

    • SAP Billing and Revenue Innovation Management (BRIM): Replaced the legacy NetCracker system, enabling usage-based billing driven by customer and partner data stored in Salesforce and Apttus CPQ.

    • SAP Revenue Accounting and Reporting (RAR): Implemented to manage IFRS 15-compliant revenue recognition, including multi-element arrangements and automated price allocations. RAR served as the core engine for revenue accounting across multiple Company Codes.

    • SAP Convergent Invoicing (CI) and SAP Contract Accounts Receivable and Payable (FICA): Provided the financial backbone for invoice aggregation, account management, and receivables processing.

Results

The new SAP-based billing and revenue recognition architecture delivered significant improvements in financial and operational performance:

  • Successful Migration: Legacy systems were replaced with minimal disruption through structured testing, parallel runs, and reconciliation protocols.

  • Improved Billing Accuracy: Usage-based billing was fully aligned with product catalogs and entitlements in Salesforce and Apttus CPQ.

  • Revenue Recognition Compliance: SAP RAR provided full support for IFRS 15, including automated price allocations and standardized treatment across global entities.

  • Smooth Data Flow: Integration with front-end systems ensured that transactions, installed base data, and pricing were reflected consistently across billing and accounting.

  • Scalable Revenue Architecture: A unified RAR setup allowed the company to manage revenue recognition centrally for multiple Company Codes.