If you are using SAP RAR, did you know that RAR can manage your commissions accounting process as well? ASC 606 represents a fundamental shift in how commissions are accounted, tracked, and reported. Excel is no longer a viable option for most because commissions may need to be tracked and reported for several years. Time is up to become compliant with ASC 606 and its subtopic ASC 340-40, which specifies how companies should account for and recognize the costs associated with its revenue contracts. Public companies have had to be compliant with ASC 606 since 2018 for calendar year-end companies, while private companies’ required adoption is 2019. For private companies this means that their first year of audit under the new standard will occur in 2020.
