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In this tutorial, Sarah Thompson, a senior solution engineer at Bramisol, discusses how SAP Revenue Accounting simplifies contract modifications for revenue contracts. The video demonstrates an existing customer contract's revenue schedule, which shows distributed revenue postings. When the customer decides to add a device and service, SAP automatically merges the new sales orders into a single revenue accounting contract. It is highlighted that any new performance obligations will require recalculating allocations, which SAP accomplishes seamlessly, ensuring the revenue is recalculated accurately under the correct method. This functionality addresses one of the common challenges faced by customers in managing contract modifications.