Audit-proof lease accounting
in accordance with IFRS 16
Transparent lease accounting with LISA
SAP integration at its best - dealing with IFRS 16 could hardly be easier
Since the operating lease was recognized in the balance sheet as of January 1, 2019, IKOR provides the appropriate SAP Add-on with LISA. The tool handles your lease accounting quickly and transparently while being audit-proof.
From LISA directly into the general ledger
LISA stands for “leasing according to IFRS 16 accounting standards” – the name says it all. LISA is the only IFRS 16 tool that has been developed exclusively for the new accounting standard as a sub-ledger in SAP FI.
The workflow in LISA is automated to the maximum: It starts with a unified contract database and ends by creating your IFRS 16 notes with a single click. All business transactions, including reassessments and contract modifications, are covered. The necessary calculations and postings are done automatically. In addition to lessee contracts, sublease and lessor contracts can be processed and reported as well.
LISA is fast, secure, and IFRS 16-compliant - all within SAP ERP
Key Benefits
LISA is a standard software perfectly tailored to corporate practice
Standardization & Streamlined Closing
LISA standardizes the management and processing of contract data. The approval workflow and the detailed documentation of individual work steps support collaboration across different departments and company locations. Reports developed in accordance with IFRS 16 provide the required information at the click of a button.
Audit Security & Compliance
Extensive plausibility checks ensure the necessary data quality. The versioning of all contract changes, the documentation of all work steps, and the comprehensive reports guarantee a transparent process. In accordance with the assigned authorizations, the results are verifiable and easy to understand for different stakeholders such as
management, internal and external auditors.
Lean & Seamless Implementation
Full SAP integration reduces error-proneness and improves the user experience. Implementing and customizing the tool is easy and highly flexible. Since there are no external interfaces, implementation projects can be kept lean. This almost eliminates project risks completely.
Core Functions
Contract Management
LISA supports organizations in managing and processing lessee and lessor contracts as well as sublease cases. Master data can be maintained and changed manually or with an Excel up-and-download function. Mass data changes are therefore easily handled. The general data structure is standardized but can be customized if necessary.
Financial Forecast
Companies can maintain contract changes and modifications in LISA on an ongoing basis. The tool automatically calculates all necessary line items over the entire contract term. Contract adjustments affect and change the calculation of line items accordingly. LISA also enables organizations to account for their leasing contracts according to different accounting standards and currencies.
Posting Sessions
All business transactions can be automatically posted from LISA to the general ledger (SAP FI) and asset accounting (SAP FI-AA). At the same time, it is possible to differentiate between short and long-term liabilities by using different accounts. Furthermore, LISA also features statistical postings (i.e., postings made exclusively in the LISA sub-ledger) of short-term and low-value contracts and intercompany cases.
Reporting & Planning
The asset-leasing history sheet contains all IFRS 16 notes-relevant information from the contract management and the financial forecast. The grid evaluation can be configured individually and can be expanded to meet customer-specific requirements. Actual and plan line items can be displayed in any currency.
Product Insights
Contract Details: Comprehensive and customizable
General, term-related, and RoU-specific information is recorded on three tabs. When a contract gets approved, an asset is automatically created in SAP FI-AA: There, the asset master record is filled with the specific contract information. The fields displayed can be flexibly shown or hidden. Organizations can adapt the fields to their individual needs.
Conditions: Suitable for any contract constellation
All common contract components can be recorded by using different condition types. The various condition types trigger different valuations and calculations in the financial forecast according to regulatory requirements.
Options: Easy to maintain and always in view
Purchase, extension, and termination options can be maintained along with the probability of occurrence and other relevant information. In addition, LISA makes it possible to monitor contracts with options via so-called resubmission reporting.
Interest Valuation: Automatically derived or manually maintained
Interest rates can be retrieved directly from the corresponding SAP interest reference tables. The applicable interest rate is determined according to company code, contract type, and term. However, interest rates can also be maintained and adjusted manually.
Financial Forecast: All business transactions over time
The financial forecast is the central component in the valuation of leasing contracts in accordance with IFRS 16. All line items to be posted are displayed comprehensively - including the right-of-use capitalization, posting of the lease liability, discounting, compounding, depreciation, forex effects, and other statistical postings. Additionally, the impact of contract reassessments or modifications can be calculated and displayed - retrospectively or future-oriented.
Posting Sessions: FI documents without interfaces
The line items calculated by the financial forecast are posted to the assigned accounts via direct input by executing the periodic posting sessions.
Asset-Leasing History Sheet: IFRS 16 Notes at the push of a button
The Asset-Leasing History Sheet contains all IFRS 16 notes-relevant information from contract management and cash flow. The grid evaluation is freely selectable and customer-specific expandable. Actual and plan line items can be displayed in any currency.
References
LISA Implementation at VARTA
To reduce the manual effort for lease accounting and increase data quality at the same time, the battery group implemented an SAP-integrated solution - LISA. With resounding success!
LISA Implementation at Miltenyi Biotec
The SAP add-on automatically maps the entire leasing process in accordance with IFRS 16 - for all Miltenyi companies worldwide!
Contact
Miklós Hegybiró
Managing Director
IKOR Products GmbH
info-products@ikor.one
+49 40 8199442-0
Celina Rüting
Crew Lead LISA
IKOR Products GmbH
info-products@ikor.one
+49 40 8199442-0
