Our client is a leading multinational pharmaceutical company focused on researching and developing medicines and vaccines for life-threatening diseases. Based in the USA, the company operates in over 100 countries.
Challenges before Nakisa's lease accounting software
The global pharmaceutical company, which manages a lease portfolio that includes real estate and equipment, began its compliance project with ASC 842 in August 2017.
During their internal pre-assessment stage, the organization outlined its requirements for a solution with efficient lease event management, domestic and international business reporting abilities, and data tracking.
The solution: Nakisa's lease accounting software
Nakisa's lease accounting software (aka Nakisa Lease Administration or NLA) offered a collaborative partnership with robust tools to address the pharmaceutical company’s complex needs. “Nakisa was found to reliably support our requirements. With SAP as our primary ERP, one of the key drivers for selecting Nakisa was its ability to natively integrate with SAP as a lease accounting sub-ledger,” said the organization’s Senior Finance Director. “The fact that the Nakisa solution could minimize our reconciliation efforts was also a critical feature,” they added.
The organization also appreciated that Nakisa's software can account for embedded leases by processing both lease and service contracts while also maintaining non-lease schedules and components. The Nakisa solution identifies leases that require modifications and automatically makes the necessary adjustments to the right-of-use (ROU) asset and lease liability calculations for all leases that are subject to remeasurement.
Lastly, the organization appreciated the user-friendly appeal of the application. “Nakisa has a state-of-the-art interface—the user experience is much more consumer-grade than other, more traditional tools on the market. Its intuitive search and reporting capabilities meant there was less training required for business adoption,” said the organization’s Senior Finance Director.
Senior Finance Director
The Results: improved ASC 842 compliance, enhanced global portfolio management, and reduced operational costs
The pharmaceutical company went live with Nakisa's lease accounting software in December 2018. Because of its native integration to SAP, Nakisa can read the organization’s fiscal calendars directly from the ERP, record the ROU asset directly in the fixed asset sub-ledger, and perform the correct amortization of lease liabilities based on the fiscal year defined in the ERP. Native integration with SAP also means that Nakisa is able to send periodic postings directly to SAP without any need for manual upload.
With Nakisa’s job scheduler, the organization was able to automate complex compliance processes, as the solution automatically calculates new values and posts adjustments to the ERP for each lease. Moreover, Nakisa's software was able to automate periodic postings, such as subsequent measurement of ROU Assets and lease liabilities, as well as reassessments and modifications based on user preference.
Leveraging the Nakisa solution also enabled the organization to manage its global portfolio and achieve streamlined lease accounting operations, cutting down on operational costs.
“Nakisa provided automation for ASC 842, which established a strong compliance environment,” said the company Leasing Director. “We see Nakisa as more than just a vendor,” they added. “Nakisa has become our partner to tackle difficult compliance processes and work towards industry best practices.”
“Not only did Nakisa provide the organization with successful compliance with the ASC 842 standards, but Nakisa’s solution is also able to support their requirement to account for multiple fiscal years and currencies,” said Imran Mia, Nakisa’s VP of Global Solutions Engineering – Finance. “The collaboration and co-innovation of our partnership has been fantastic.”
Interested in learning more about Nakisa's lease accounting software and how we can assist you in tackling your lease administration, accounting, and compliance challenges? Let’s have a talk. Our solution experts will answer all your questions, share the best lease management practices, and demonstrate how Nakisa helps streamline the end-to-end business process.
Looking for enterprise-grade IFRS 16 lease accounting software?
If you’re aiming for a success story like the world's largest pharmaceutical company, Nakisa’s lease accounting software is your best solution.
Designed for global enterprises, our cloud-native solution offers robust scalability and adaptability while ensuring parallel compliance with IFRS 16, ASC 842, and local GAAP standards. With seamless bidirectional integration with various ERPs and automated lease administration, Nakisa can help your company streamline the most complex accounting processes.
Schedule a free demo now and discover how our solution can transform your lease administration and accounting operations.
