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Line of Business: Finance Suite
Top 10 Lease Accounting Requirements – 2023 list!
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Written by: Zeina Dabbagh, Director, Solutions Engineering – Finance Suite
Read Time: 5 Min
Looking to change your current lease accounting solution or to acquire a new software as your lease accounting management is becoming complex? Check out these 10 must have capabilities for your next lease accounting solution:
1. GLOBAL VISIBILITY OF LEASING PORTFOLIO
Lease intensive organizations with global presence need to have visibility over their leasing portfolio by area, business unit, company code, currency, and different matrices of views. Nakisa Lease Administration (NLA) provides this capability out of the box including access to disclosure reports for Financial Statement use.
2. LEASE ADMINISTRATION
World class leasing systems provide lease administration capabilities that include workflows, segregation of duties, PDF document storage, data tagging and many others. NLA has been designed to allow administration of different leasing portfolios.
3. BULK MANAGEMENT
Large volumes of leases need to be handled in mass operations rather than individual basis. NLA easily accommodates bulk actions which include mass upload of lease contracts and applying batch jobs for postings. This facilitates the user experience by saving them time and automating any manual lease accounting processes.
4. LEASE ACCOUNTING COMPLIANCE
As a growing need of international organizations, compliance with IFRS-16 is becoming more of a pressing requirement that needs a system to track. NLA is compliant with both IFRS16 and ASC842.
“Nakisa for us is the one we are using for real estate for all of our markets. The benefit that we have seen is that is can do the accounting IRFS 16, ASC 842 and have an SAP integration. It is the system that we used that connects to the fixed assets and solved the Fx problem.”
Shawn Husband
Senior Director Global Lease Center of Excellence,
walmart
5. ENTRY OF DIFFERENT LEASING TERMS AND CONDITIONS
The larger the leasing portfolio is, the more complicated leasing terms and conditions can exist. NLA supports all the different types of terms including prepayments, free rent periods, initial direct costs, cash incentives, purchase options, termination options, indexation, and many others.
6. EVENT MANAGEMENT
Subsequent to leases getting signed and recognized in the system, it is quite often the case that they go through an event during the life cycle. Events include exercising an extension option, applying a termination option, decreasing/increasing the lease payment or lease term, and many others. NLA supports all the different types of lease events out of the box.
7. INTEGRATION
Different organizations may have unique technical landscapes which can require implementing a solution as a standalone or integrating it with the ERP system such as SAP ECC, SAP S/4HANA, Oracle EBS, etc. NLA can be implemented as either a standalone or ERP connected. NLA is ERP agnostic when it comes to integration, it is compatible with any system and can sustain multiple integrations simultaneously with any of such systems (ERPs, BI tools, or any third-party system). Read more about how our integrations work here.
"The integration is really important, because once we have verified that contracts are captured correctly in the Nakisa system, we don’t want to worry if in the ERP the data are also correct and to run complex reconciliations every month.”
8. FOREIGN EXCHANGE AND TRANSLATION SUPPORT
International organizations require leasing systems to support different currencies and to apply the currency translation based on different transaction types (month-end rate, spot rate, average rate). This functionality is available in NLA out of the box.
9. MULTI-LANGUAGE SUPPORT AND NON-STANDARD CALENDAR SUPPORT
International organizations require leasing systems to support multi-languages for easier user input and experience, as well non-standard calendars (such as Hijri calender or 4-4-5). Both these requirements are included in NLA.
Note: NLA supports any Unicode language to be input into the application except traditional chines (top-down)
Read more about 4-4-5 calender and some of its benefits and challenges here.
10. RESPONSIVE CUSTOMER SUPPORT
International organizations required 24 hour support to accommodate teams in different locations. At Nakisa, going above and beyond is a pillar of our customer-focused mission. Nakisa’s Global support and our experts are available 24/7/365 with locations across the globe. We also provide various avenues to add value to our clients globally, check out why Fortune 500 companies join us.
Posted in: Finance, Nakisa Lease Administration
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