Sierra Infosys, Inc., a globally recognized leader for finance, data & analytics products, solutions and services. At Sierra, we offer ready to deploy Contract and lease management solution for planning, forecasting, predictive analytics using SAP Analytics Cloud. For more details visit – https://www.sierratec-us.com/sap-clm-contract-and-lease-management/
The Need: Current IAS 17 & ASC 840 regulatory are changing to IFRS 16 & US GAAP (ASC 842). The new compliance regulations have a significant impact on how business account for their leases and most importantly for their Financial Disclosure report.
Challenges: Complex financial systems and decentralized leasing business processes. Failing to quickly adopt regulatory changes and new compliance policies. Time consuming financial data reconciliation and financial disclosure processes delays and complicates the submission of reports to statutory authorities.
Our Solution is a well thought through solution. Its functional design is diligently formulated by Charted Financial Consultant who has rich experience in IFRS 16 and US GAAP ASC 842 accounting standards. The functional logic is built as HANA model which consumes CLM and FI data from S4HANA or ECC. These models are consumed in SAP Analytics Cloud and are READY TO DISTRIBUTE which consists of Disclosure reporting and contract oriented analytical solution. As a part of disclosure reporting, an entity shall disclose information related to its total lease cost, including amounts recognized in the income statement and costs capitalized related to leases and the related cash flows.
Disclosure financial report is divided mainly into five:
- Weighted Average,
- ROU Assets,
- Cash Flow,
- Balance sheet,
- Lease Liabilities.
The Analytical solution mainly has
- Asset Class,
- Valuation rule,
- Detailed contract wise report which has
- contract start date,
- end date,
- relationship valid to and from,
The disclosure report is providing by building the following information as per the statutory rules :- Opening Gross Book value, Closing Gross Book value, Additions, Accumulated Depreciation, Variable Lease Cost, Short Term Lease Cost, Weighted Average Life, Weighted Average Interest, Total Liability Closing Balance, Long Term Principle Closing Balance.
As Sierra has wide experience in providing excellent high-end analytics solutions for customer’s ease, with our well designed CLM Analytics and Disclosure reporting you can enjoy faster adoption and high-performance CLM analytical solution!!!
No more hectic report preparation and reconciliation.
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