Solution Brief: SAP Lease Administration by Nakisa

SAP Solution BriefSolution ExtensionsSAP Lease Administration by Nakisa

Understand Your Lease Portfolio and Comply with New Lease Accounting Standards

BenefitsSolutionObjectives Quick Facts

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Objectives

Clear visibility of your corporate lease portfolioToday, most companies need to have more transparency and full visibility into their wide portfolio of leased assets, from computer equipment to office space to vehicles. This visibility is critical in developing effective compliance strategies for new regulatory lease accounting and reporting standards and for making better business decisions.

To support lease accounting for regulatory compliance and drive more efficient cost controls, your company needs to have clear visibility into your global lease portfolio, including:

• Lease composition • Key lifecycle dates • Value of leased assets • Responsible organization units

To achieve clear visibility into your global lease portfolio, you require a unified set of lease data. With the SAP® Lease Administration application by Nakisa, you can create a central repository of all your lease assets across your company. You can use the application to capture and report lease contract information to comply with new accounting standards. The application also provides visibility into lease exposure to help your company optimize your global leased assets portfolio and make better business decisions.

Clear visibility of your corporate lease portfolio

Benefits Quick FactsSolution


Improve visibility into lease exposure for better complianceThe way most companies account for operating leases is changing. Standard practices of reporting leases off-balance-sheet and disclosing them in notes of financial statements are disappearing. New standards under U.S. GAAP and International Financial Reporting Standards (IFRS) regulations are requiring organizations to capitalize operat-ing leases and record them in balance sheets as assets and obligations.

Is your company ready for these regulatory changes? For many companies, lease data is dispersed across their entire organizations. Different people collect data using diverse processes and mechanisms, which can trigger significant variation in quality, integrity, and relevance of lease data across multiple infor-mation sources. Documentation is often poor, such as assumptions used for lease classifi-cation. Challenges can compound exponen-tially as lease portfolios increase and spread across regions globally, sparking significant risk of regulatory noncompliance, as well as inaccuracy in reporting.

Find out how your company’s leases comply with the new IFRS and U.S. GAAP standards.

Improve visibility into lease exposure for better compliance

Unified lease data from extensible data collection forms

Lease traceability and collaboration

Solution BenefitsObjectives Quick Facts


Unified lease data from extensible data collection formsSAP Lease Administration provides a single point of entry for lease data collection. With the application’s functionalities for importing mass data, you can import data from multiple contract sources to create an accurate, central repository for your lease data for new, past, and future leases.

Your company can prepare for future lease compliance requirements. You can also use flexible options in SAP Lease Administration to collect additional lease attributes. With this adaptable data model, you can capture custom attributes for your business processes. In addition, the application helps simplify and standardize data entry for any type of lease operation, either for the lessor or the lessee.

Get a single source of truth for your lease data to comply with the latest accounting standards.






Lease traceability and collaborationWith SAP Lease Administration, your company can optimize traceability for lease administra-tion compliance and reporting processes. Various teams can collaborate in collecting relevant lease data. A user-friendly interface in the application requires minimum training for these processes. Use this interface to manage lease administration processes more efficiently, productively, and transparently. The intuitive and engaging user interface requires minimal training for inexperienced users.

You can track any changes made to the lease data as well as track who made the changes from start to finish. As a result, you can establish and maintain an audit trail of changes and decisions made throughout the data collection process and help ensure traceability for compliance and reporting.

Multiple key stakeholders can collaborate by sending messages, receiving alerts, validating data accuracy, and collecting changes during the lifecycle of leases the stakeholders manage. Consequently, data accuracy becomes more easily achievable through review of information by legal advisors, accountants, government bodies, consultants, and other relevant stakeholders. Collaboration can provide a mechanism to validate contractual attributes of leased assets. See the figure on the next page.










Start collaboration

Upload content

Classify and collect data

Share for validation

Receive request

Review contract summary Validate data Share for

approval

Receive request

Review contract on a dashboard

Discuss and approve for

business

Finalize process

Figure: Collaboration across the enterprise for accurate and validated lease data

Sara LopesContract analyst

Tom ReillySenior accountant

John MillerFinancial executive


Benefits of using lease data analysisUse the SAP Lease Administration application to:

• Prepare for compliance with new lease accounting standards – Access company-wide lease data, visibility, and traceability to support regulatory standards.

• Visualize lease portfolio and exposure quickly and intuitively – Use the dash-board in SAP Lease Administration to help break down composition of your assets, including key dates, value of leased assets, and responsible organizational units.

• Centralize all lease data in one reposi-tory – Import and integrate data quickly from thousands of contracts from various sources into a single repository with mass importing and field-mapping functionalities.

• Improve and track end-of-term and renewal lease processes – Gain insight into lifecycles of lease contracts, including key dates such as renewals and expirations.

• Speed up lease acquisition approvals by collaborating with key stakeholders – Communicate new lease information and lease renewals easily with key stakeholders to help ensure assessment, validation, and approval of legal, financial, and business implications. Simplify validation and approval processes.

• Analyze the business impacts of your decisions – Use analytics to visualize various scenarios about your lease portfolio to support strategic decision making and to optimize your company’s global assets portfolio.

Benefits of using lease data analysis


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SummaryAs a single point of entry to collect and validate the contractual attributes of leased assets, the SAP® Lease Administration application by Nakisa provides visibility into your company’s lease exposure. Optimize global assets portfolio management and support accounting processes for more efficient cost controlling and regulatory compliance using the application. Objectives

• Be prepared for new accounting standards and ensure you have the right tools to achieve reporting compliance

• Unify all leasing data into a single repository in an SAP application

• Obtain required legal, financial, and business validations quickly and efficiently

• Visualize lease exposure for better strategic decision making and planning

Solution • One unified set of contractual data for all your lease operations

• Extensible data collection forms to collect business-specific attributes

• Collaboration throughout the data collection process

• Complete visibility into changes and decisions made during data collection

Benefits • Prepare for compliance with leasing accounting standards

• Visualize your global lease portfolio and exposure

• Centralize all your lease data in one repository

• Speed up validation by collaborating with stakeholders

• Improve strategic decision making for lease compliance

Learn moreTo find out more, call your SAP representative today or visit us online.

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Solution Brief: SAP Lease Administration by Nakisa