SAP RAR Configuration for GAAP to IFRS Ledger Mapping
Basic Ledger Configuration
Configuration
T-Code Navigation Path Description
Elements
Define leading ledger
SPRO > Financial Accounting > General Set ledger type,
(0L for GAAP) and non-
FAGL_LEDGERS Ledger Accounting > Ledgers > Ledger currencies, fiscal year
leading ledger (2L for
> Define Ledgers variants
IFRS)
SPRO > Financial Accounting > General
Transformation rules for
Ledger Accounting > Business Configure transfer rules
FINS_LEDGER_XFER GAAP to IFRS
Transactions > Integration with Other between ledgers
adjustments
Components > Funds Management
SPRO > Financial Accounting > General Set different valuation
Define fiscal year
OB29 Ledger Accounting > Business dates for each
variants
Transactions > Closing > Valuate accounting principle
Accounting Principle Configuration
T-
Navigation Path Description Configuration Elements
Code
SPRO > Controlling > General Controlling > Define accounting Create US GAAP and IFRS
OKKP
Organization > Maintain Accounting Principles principles principle definitions
SPRO > Financial Accounting > General Ledger
Accounting > Business Transactions > Closing > Principle-specific Configure document types
GGB1
Document > Define Document Types for Principle- document types for differential postings
Specific Postings
Define conditions Create revenue
SPRO > Sales and Distribution > Basic Functions >
OVK1 for different recognition condition
Pricing > Pricing Control > Define Condition Types
principles types per principle
Revenue Recognition Configuration
T- Configuration
Navigation Path Description
Code Elements
SPRO > Financial Accounting > Accounts Receivable Configure principle-
Map revenue accounts
OBYA and Accounts Payable > Revenue Recognition > specific account
by accounting principle
Account Determination determination
Create separate keys for
SPRO > Sales and Distribution > Billing > Revenue Configure revenue
VFX3 GAAP vs IFRS
Recognition > Maintain Revenue Recognition Keys recognition keys
treatments
SPRO > Financial Accounting > General Ledger
Accounting > Business Transactions > Integration > Assign G/L accounts to Different accounts
VZRP
Sales and Distribution > Revenue Recognition > Assign revenue conditions based on principles
G/L Accounts
RAR Specific Configuration
T-
Navigation Path Description Configuration Elements
Code
SPRO > Financial Accounting > Revenue Basic RAR
FRRV Enable RAR for both ledgers
Recognition > Basic Settings configuration
SPRO > Financial Accounting > Revenue Proof of Entitlement
FRRPE Configure POE rules by principle
Recognition > POE Management settings
SPRO > Financial Accounting > Revenue Configure contract Different contract liability
FRRC
Recognition > Contract Management settings treatment by principle
Document Splitting Configuration
Configuration
T-Code Navigation Path Description
Elements
SPRO > Financial Accounting > General Ledger
Define splitting Configure balanced
FAGL_SPLIT_RULES Accounting > Business Transactions >
rules entries across ledgers
Document Splitting > Define Rules
SPRO > Financial Accounting > General Ledger Activate
Enable for RAR
FAGL_SPLIT_METHOD Accounting > Business Transactions > splitting
transactions
Document Splitting > Activate Methods methods
Parallel Valuation Configuration
T- Configuration
Navigation Path Description
Code Elements
SPRO > Financial Accounting > General Ledger Accounting
Define valuation Create ledger-specific
OBY6 > Business Transactions > Valuation > Valuation Methods >
methods valuation methods
Define Valuation Methods
SPRO > Financial Accounting > General Ledger Accounting
Assign methods Link valuation methods
OBYC > Business Transactions > Valuation > Valuation Methods >
to ledgers to GAAP/IFRS ledgers
Assign Valuation Methods to Ledgers
Multi-Element Arrangement Configuration
T-Code Navigation Path Description Configuration Elements
SPRO > Financial Accounting > Revenue Configure SSP Different SSP methods by
FRRV_SSP
Recognition > Standalone Selling Price determination principle
SPRO > Financial Accounting > Revenue Configure allocation Principle-specific
FRRV_ALLOC
Recognition > Transaction Price Allocation methods allocation methods
Variable Consideration Configuration
T-Code Navigation Path Description Configuration Elements
SPRO > Financial Accounting > Revenue Configure constraint Different constraint rules
FRRV_VAR
Recognition > Variable Consideration settings (GAAP vs IFRS)
SPRO > Financial Accounting > Revenue Configure estimation Principle-specific estimation
FRRV_EST
Recognition > Revenue Estimation methods approaches
Reporting Configuration
T-Code Navigation Path Description Configuration Elements
Revenue FRRREVHDR, FRRREVITM
SE16 Direct table access
recognition tables (header/item tables)
SPRO > Financial Accounting > General Ledger Configure drill- Ledger-specific reporting
SE43
Accounting > Tools > Drill-Down Reporting down reports views
General Ledger > Information System > General
Financial Principle-specific financial
FAGLB03 Ledger Reports > Financial Statements > Balance
statement reports statements
Sheet/P&L
Key Differential Treatment Areas
Revenue Recognition Area GAAP (Leading Ledger) IFRS (Non-Leading Ledger) Configuration Location
Contract identification More prescriptive criteria Principles-based approach FRRV_CONTRACT
Variable consideration More constraints Less constrained FRRV_VAR
License revenue Functional vs. symbolic IP Rights vs. access basis FRRV_LICENSE
Contract modifications May create new contract May modify existing FRRV_MOD
Contract costs Limited capitalization More capitalization OBYC
Disclosure requirements More quantitative More qualitative FAGLB03
Integration Test Transactions
T-Code Purpose Description
FB50 Manual journal entry Test principle-specific postings
VA01 Create sales order Test revenue recognition trigger
VF01 Create billing document Test RAR integration
FAGLL03 GL line item display Verify postings to both ledgers
FRRV_REP Revenue recognition reports View by accounting principle
