Steve Lambillotte, Senior Solution advisor Finance & GRC ... · PDF fileSAP Real Estate...

IFRS16 - Introduction

Steve Lambillotte, Senior Solution advisor Finance & GRC

December 2017

2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The New IFRS Leasing Standard

Solution Overview SAP Real Estate Management

Solution Overview SAP Lease Administration by NAKISA

Summary

Agenda


The Leasing Event of a Generation – Driving Significant Change

New standard on leasing released by

FASB and IASB

Every IFRS/ US-GAAP reporting

company renting real estate or leasing

equipment will be impacted

Large companies with big property

portfolio are affected most and need to

react quickly to prepare

Besides affected accounting, new

standards will transform corporate

business processes in many

areas

Need to capitalize many corporate

operating leases and record these lease

obligations on the balance sheet as

assets and liabilities

IFRS

US-GAAPFUTURE

Accounting

Real Estate

Purchasing

PAST

OPERATING

LEASE

FINANCE

LEASE


The Roadmap

Get ready for the new Standards

TRANSITION AND BUILD

Multi-GAAP

Posting

RUNPLAN

Start Contract Management

Initial

Valuate

Contracts

Perform

Abstracting

Implement

Change Management

ANALYSIS

PHASE

Contract

Management

Valuation and

Classification


IFRS 16 Compliance – More than a posting tool …

LeasingReal Estate

Other Leasing

Other Leasing

High Volume

IFRS 16

Contract Management

Maintenance, Alerts, GIS,

CAD, Occupancy, ….

SAP Real Estate

Management

SAP Leasing Admin. By

NAKISASAP Real Estate Mgt

SAP Real Estate Management Mapped to Customer Needs

Portfolio Management Real Estate Analytics Master Data Management Partner Management Transaction Management

Commercial Real

Estate ManagementReal Estate Search Lease Management

Condition

Adjustment

Percentage

Rent

Cost

Recovery

Third Party

ManagementLegal Compliance

Corporate Real Estate

ManagementSpace Management Room Reservation Move Management

Facilities Management Construction Modernization & Refurbishment Maintenance & Repair Service Management

Support Processes Accounting Controlling ToolsIntegration to SAP Industry

Solutions

SAP Real Estate

Management

Solution Map


IFRS Leasing

SAP Real Estate Solution

Lease Portfolio

Lease

AdministrationReporting

Payment

Generation

Asset

Valuation

Lease Review

Asset

ClassificationReporting

IFRS & US GAAP Leasing

Contract-

Management

In RE-FX

Asset

Accounting

SAP FINANCE

Coordination between the Lease Administrator and Asset Account is critical for proper classification and

valuation. Sharing a common platform eliminates operational silos between these critical players.

SAP Real Estate Management is a

subcomponent of SAP Finance –

simplifying your solution landscape by:

– Real-time valuation of finance leases

– Elimination of financial interfaces

– Reducing the number of applications in

system landscape

GENERAL LEDGER (MULTI-GAAP ACCOUNTING)

ACCOUNT PAYABLE/RECEIVEABLE

CONTROLLING & PROFIT CENTER ACCOUNTING

REPORTING


SAP Real Estate Solution Approach Integrated Leasing Scenario

▪ Classification and evaluation rules

▪ Calculate and report on net present value, depreciation, repayment and interest rate

▪ Change management / Re-valuation

▪ Support transition scenarios

▪ Create / Link to fixed assets

Valuation and Classification

▪ Different lease types for lease in and lease out

▪ Leasing partners

▪ Subject of agreement like cost center, property, WBS Elements, equipment, internal Orders, etc…

▪ Terms and conditions for notice and renewal options (validity)

▪ Lease payment cash flow with full integration

▪ Critical dates and reminders

▪ Document management

Contract Management

▪ Multi-GAAP enabling (IFRS, US GAAP, HGB)

▪ Manage right-of-use assets and liabilities

▪ Customer / Vender accounting

▪ Post depreciation and repayments

▪ Lease payments

▪ Controlling / Profit center accounting

Multi-GAAP Posting


Kondition

Structures Right

of Use Assets

Conditions are the base

for valuation calculation

Combining legal and

accounting terms

Asset creation/

assignment

Erzeugung

Bewertung

Creation or assignment

of RoU asset

Current and historic

valuations

Erzeugung

BewertungErzeugung

BewertungCreate valuation

IFRS LeasingContract Design

Contract

terms

Contract

Subjects

Conditions

Valuation Rule


• Asset Sale or Lease Back

• Equipment Location Management

• Capabilities to handle asset events such as casualties, swaps, and asset replacement

• Partial Damage of Assets

• Termination with Return of Asset

Equipment Processes NOT Supported by SAP Real Estate Management

If your requirements include these scenarios,

customizations in your landscape will be required in SAP

Real Estate Management to support these processes!


SAP and Nakisa partnering to deliver

Worldwide Solutions Provider

800+ customers, 24+ Industries, 125+ Countries

SAP Solex Partner Since 2007

Jointly developed with SAP

Part of the product and enhancement pack roadmap

Meets SAP premium qualification

Validated against SAP’s product standards for security,

performance, supportability, accessibility and documentation

Sold and supported by SAP

Around the globe


Solution Overview

Main Components & Core Use-case

Plan & Budget

Contract Creation &

Classification

Equipment Tracking

Payments & Reconciliation

Event Management

• Business case

• Funding

• Fleet Planning

• Lease vs Buy

• Analytics

• Reports

• Data capture

• Lease structure

• Accounting calculations

• Classifications &

Approvals

• Onboard/Install

equipment

• Measurements

• Capture

Equipment info

• Manage

accounting

impacts

• Read/Create

Accounting

documents(recurri

ng , one time

docs)

• Asset events

• Payment events

• Contract events

SAP Lease

Administration by

Nakisa Other

ERPs

PUSH PULL

Web Services, Excel, RFC ,.CSV


SLAN leveraging SAP ERP modules

General Ledger

• A complete record of financial transactions

• Internal /external reporting

Asset Accounting

• Track, capitalize, and manage ROU/Asset accounting

Accounts Payable

• Execute payments

• Internal AP reporting

Material Management

• Read/Create PO

• Approve/Release PO

• Link Lease Contract to PO materials

Equipment Management

• Track serial numbers, usage, maintenance, etc.

• Link assets to equipment

SAP Lease Administration by Nakisa


Landing Page / Summary View

Configurable Alerts

Fully searchable and easy-

to-filter list of contracts


Excel based Mass Upload Capability

Easy excel upload

functionality


Uploading signed documents and tagging Information

Tag attached documents to

make collected data traceable


Extensible Data Collection Forms

Easy-to-fill data forms

that connect to ERP


Support for Lease Determination

Lease determination support


Classification & Approval Process

Contract Summary


Generation of Amortization Schedule

Amortization schedule


Automated Posting in SAP AP and Treasury Modules

Integration with AP and Treasury


Analytics: Payments dashboard

Easily track key payment

information with configurable charts


Solution SummaryAP Lease Administration by Nakisa

COST SAVINGS & AVOIDANCE

•Leverage existing investments in financial processes (ERP).

•Reduce risk of penalties and undue payments through alerts and notifications

•Save time and costs by centralizing all contracts data in one, single repository

STRATEGIC INSIGHT &

DECISION-MAKING

•Evaluate impact on financial statements with a global view on all lease contracts

•Create what-if scenarios to analyze financial implications and make more informed business-decisions

•Gain visibility into lease liabilities and commitments

COMPLIANCE & REPORTING

•Prepare for upcoming lease accounting standards and financial transparency regulations

•Maintain an audit trail of changes and decisions for traceability

STREAMLINE & SIMPLIFICATION

•One system for accruals, payments, reconciliation and financial reporting on leases

•Simplifies asset tracking and accounting in ERP Fixed Assets

•Streamlines internal reporting through SAP ERP

POWERFUL TECHNOLOGY & INTEGRATION

•Finance and accounting automation through full push and pull ERP integration

•Faster adoption and high configurability

•Flexible deployment options: cloud, on-premise or hybrid

Thank you.

Contact information:

Steve Lambillotte

SAP Senior Solution Advisor GRC & Finance

+32 486 13 65 18

[email protected]

Steve Lambillotte, Senior Solution advisor Finance & GRC ... · PDF fileSAP Real Estate...

Documents

Transcript of Steve Lambillotte, Senior Solution advisor Finance & GRC ... · PDF fileSAP Real Estate...