Managing lease contracts has always been a challenge for retailers but it has become even more time consuming and complicated to handle since IFRS16 came into effect. Large volumes of data are manipulated on spreadsheets every month to get to the figures that need to be included in the Balance Sheet. This leads to calculation errors, risk of data loss and non-compliance.

SAP Contract and Lease Management is a simple route to getting rid of these issues. And it can actually do a lot more than ensuring compliance with minimal manual intervention. It offers a streamlined approach to all stakeholders, enabling communication and collaboration at the right stages of the lease lifecycle.

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Contract & Lease Management

  • Automatic creation of accurate cash flow for complex lease contracts

  • Seamless integration with SAP Finance

  • Full lifecycle management of lease contracts

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Target

  • IFRS16 compliance

  • Significant reduction in manual effort

  • Auditability and traceability of changes

  • Eliminate siloed operations across stakeholders

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Advantages

  • Standardised approach to lease contracts across the business

  • Streamlined period-end processing

  • Complete visibility of contract cash flow from start to end date

SAP Contract and Lease Management is available in SAP ECC and S/4HANA landscapes. The user interface is straightforward and intuitive and it can be fully run on Fiori. The different contract stages, from initial creation to financial postings, can be mapped to different business roles, which can be a huge benefit when multiple users participate in the management of contracts. The cash flow can be simulated multiple times, ensuring that the contract lifecycle only starts when all the calculated values are correct.     

Renewals and break options can be linked to a contract and important dates can be created as reminders. This highlights very easily which are the key dates for a contract and help the business stay on top of upcoming events.  

Advantages at a glance

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  • Eliminates offline maintenance of complex spreadsheets

  • Considerable reduction of manual effort

  • Integration with SAP Finance

  • Easy to consume user interface

  • Accuracy in cash flow calculation

  • Segregation of duties

  • Automated calculation of financial postings

  • Possibility of notifications workflow

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