SAP RE-FX-LA Lease Accounting pursuant to IFRS16

Current challenges

1. According to IFRS16, rental contracts must be capitalized at their net present value and depreciated over the respective term. Integration into a contract management system is required.
2. Ambiguity regarding the modeling of the leasing standard pursuant to IFRS16 in SAP, fully integrated in an existing SAP Finance system

The solution

• Preliminary procedural briefing
• Analysis workshop on the RE-FX real estate solution for contract management, on integration with SAP FI and CO (customers/vendors, asset accounting), and on the use of the “Contract Object” account assignment object for non-real estate contracts
• Documented results with recommended actions and implementation effort
• Prototype implementation in a customer test system

The benefits

• Transparency regarding payment flows and their valuation
• Recommendations on how to proceed
• Optimization of planning processes
• Solution within the standard SAP module, with full integration that includes drill-downs to documents and master data
• Support for parallel accounting with the ledger/account methods