Which of the following fulfilment types are supported in SAP S/4HANA RAR? Note: There are 3 correct answers to this question.

Question

Options

• APercentage of Completion
• BEvent-based
• CContract-based
• DEstimated Quantity
• ETime-based

• A
  5% (2)
• B
  87% (34)
• C
  8% (3)

Explanation

In SAP S/4HANA Revenue Accounting and Reporting (RAR), performance obligations are fulfilled using Event-based (B), Estimated Quantity (D), and Time-based (E) fulfillment types - which directly map to how IFRS 15 / ASC 606 recognize revenue either at a point in time or over time.

Event-based triggers recognition when a discrete business event occurs (e.g., goods issue or service confirmation). Estimated Quantity recognizes revenue proportionally based on projected total quantities delivered. Time-based spreads recognition evenly across a defined period, ideal for subscriptions or maintenance contracts.

Percentage of Completion (A) is a legacy accounting method (common in construction/project accounting under older standards) but is not a distinct fulfillment type within the SAP RAR engine - time-based and estimated-quantity methods cover equivalent scenarios. Contract-based (C) refers to a contract object in RAR, not a fulfillment mechanism - it describes the data structure, not how revenue is recognized.

Memory tip: Think "BDE = How you Get Paid" - By Event, by Delivery estimate, by Elapsed time. If it sounds like a contract type or an old accounting method (% completion), it's a distractor.

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