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

Question

Options

• AEvent-based
• BTime-based
• CContract-based
• DPercentage of completion
• EEstimated quantity

• A
  93% (28)
• C
  3% (1)
• E
  3% (1)

Explanation

SAP S/4HANA Revenue Accounting and Reporting (RAR) supports three fulfillment types aligned with IFRS 15/ASC 606 revenue recognition methods: Event-based (A) recognizes revenue when a specific triggering event occurs, such as goods delivery or service completion; Time-based (B) spreads revenue evenly across a defined time period; and Percentage of Completion (D) recognizes revenue proportionally based on how much of the performance obligation has been fulfilled, typically used for long-term contracts.

Option C (Contract-based) is incorrect - "contract" is a structural object in RAR (the container for performance obligations), not a fulfillment method itself. Option E (Estimated quantity) is a distractor; while quantities can factor into calculations, there is no fulfillment type by that name in SAP RAR.

Memory tip: Think of the three correct answers as matching the three core IFRS 15 over-time/point-in-time scenarios - Event = point in time, Time = straight-line over time, POC = proportional completion. "Contract" and "Estimated quantity" describe inputs to RAR, not fulfillment methods.

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