Steve Lambillotte, Senior Solution advisor Finance & GRC ... · PDF fileSAP Real Estate...
Transcript of Steve Lambillotte, Senior Solution advisor Finance & GRC ... · PDF fileSAP Real Estate...
IFRS16 - Introduction
Steve Lambillotte, Senior Solution advisor Finance & GRC
December 2017
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The New IFRS Leasing Standard
Solution Overview SAP Real Estate Management
Solution Overview SAP Lease Administration by NAKISA
Summary
Agenda
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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
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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
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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
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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
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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
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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
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• 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!
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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
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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
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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
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Landing Page / Summary View
Configurable Alerts
Fully searchable and easy-
to-filter list of contracts
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Excel based Mass Upload Capability
Easy excel upload
functionality
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Uploading signed documents and tagging Information
Tag attached documents to
make collected data traceable
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Extensible Data Collection Forms
Easy-to-fill data forms
that connect to ERP
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Support for Lease Determination
Lease determination support
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Classification & Approval Process
Contract Summary
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Generation of Amortization Schedule
Amortization schedule
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Automated Posting in SAP AP and Treasury Modules
Integration with AP and Treasury
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Analytics: Payments dashboard
Easily track key payment
information with configurable charts
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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