"Our previous system of using Excel to monitor and track our leases would make compliance to IFRS 16 impossible, so implementation of a solution was essential for us. Knowing that Nakisa Lease Administration natively integrated with our existing SAP ERP was a huge gain."
JDINI HADIYANTI, Senior Specialist for Business
THE CHALLENGE: COMPLIANCE AND OPERATIONAL EFFICIENCY
When IFRS 16 compliance requirements were announced, Trakindo was managing all their leases in Excel and then manually updating their SAP ERP. Leased assets were not capitalized under IAS 17, instead all the related leasing costs were expensed. This implied that to be compliant with the new standards, not only would they need a tool going forward, they would also need to backdate the requirements in their financial statements. Relying on Excel for an organization of this size meant that many users were creating contracts with no central repository for tracking. Disparate data and the absence of a consolidated view of the organization's operations led to inefficient business processes.
Trakindo were unable to track contract maturity to proactively engage lessors in discussions around renewals and negotiations, which meant they were working with asset information that wasn’t always complete, or up to date. What’s more, without the ability to schedule reports, do mass modifications and mass uploads, or batch postings, they were having to spend hours every month doing it all manually in Excel.
THE REQUIREMENTS: CLOUD BASED AND FUTURE-PROOF
- Seamless bi-directional integration with SAP ERP
- Rapid deployment that ensures timely compliance to the standards
- Software that has the capability to scale at the same pace as the business
- An easy solution to use and navigate with minimum training
- Day two accounting features to streamline operation
“It was important to us that the exchange of information was seamless, without any additional hardware or software needed, and that it covered specifics such as cost centers, business units and vendor information. As we continue to grow, the software is required to be able to work with an increase of contract volume and complexity, as well as support multiple currencies. Nakisa Lease Administration ticks all these boxes.”
Manager Core Technology Lead, PT Trakindo
THE SOLUTION: NAKISA LEASE ADMINISTRATION
Trakindo's transition to Nakisa Lease Administration was smooth, with the implementation taking less than 30 days from start to finish. “We started to see improvements even before the solution went live,” says Adam Maulana Akbar, who works on fixed asset management for Trakindo's Accounting and Tax Division.
“We eliminated human error and streamlined the correct categorization of assets. For the first time, the team had a full view of all the properties and equipment being leased. Things became more transparent and consistent.”
By improving this visibility, Trakindo is able to better understand its operational priorities and take action that has meaningful impact on the business, as well as ensuring compliance through proper tracking.
Akbar stated “Nakisa is a true trusted business partner. We look forward to continuing our journey with them over the coming years.”
“I want to thank the Nakisa team for all the support, effort and co-operation throughout. Our recommendation to other enterprises that are still on-prem is to upgrade to the cloud version. Like us they’ll be able to benefit from a solution that is user-friendly, easy to maintain and improve their business operations with continuous innovation and solution advancements.”
Senior Specialist for Business Systems, Trakindo