Record to Report (R2R)

What is this?

Record-to-Report (R2R) is the financial process of recording, processing, and reporting all business transactions.


Why it exists?

Organizations need:

  • Accurate financial records
  • Compliance with regulations
  • Financial reporting

Core Function

R2R collects and processes financial data and produces reports like balance sheets and profit & loss statements. :contentReference[oaicite:1]{index=1}


High-Level Flow

  1. Record transactions
  2. Process and validate
  3. Close accounts
  4. Generate reports

Key Activities

  • Journal entries
  • Ledger postings
  • Period-end closing
  • Financial reporting

R2R ensures all transactions are accurately recorded and consolidated. :contentReference[oaicite:2]{index=2}


Business Objects

Business_Partner
Invoice


Key Takeaway

R2R is: → Financial truth layer

If this is wrong: → Reports lie
→ Audit fails