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author's profile photo Isra Akhter
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Isra Akhter

IFRS 16 – Real Estate Management Solution in S/4 HANA Public Cloud

Posted on Oct 18, 2019 at 04:23 AM 2.5k Views

Hi All,

In order to comply with the new IFRS 16 lease accounting standard, we are required to recognize a right-of-use (RoU) assets and a lease liability for almost all type of lease contacts in S/4 HANA Public Cloud. The following link provides the SAP solution in general but does not provide the details specific for S/4 HANA Public Cloud.

https://blogs.sap.com/2018/09/21/ifrs16-lease-standard-sap-solution-through-real-estate-management/

Can you please help me to answer the questions below?

  1. Is the new IFRS 16 lease accounting standard supported in S/4 HANA Public Cloud?
  2. If yes, what are the activation and license requirements?
  3. At what extend, do we need to use Real Estate Management and does it require a full module activation/license?

Thanks,

Gozde

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    author's profile photo Sandra Isabel Goncalves Batista
    Sandra Isabel Goncalves Batista
    Posted on Oct 18, 2019 at 07:52 AM
    2

    SAP S/4HANA Cloud for Contract & Lease Management is available as part of SAP S/4HANA Cloud as a native

    solution. It is priced separately.

    Good functional coverage is available today:

    - Covering real estate, as well as machinery, equipment, vehicles and computer hardware.

    - Covers standardized Lease-in, Lease-out, Sublease and Service contract management activities.

    - Flexible contract management with contract types, terms, partners, different contract items and document management

    - Calculates and posts the valuation cash flows based on GAAP assignments, with the cash flow being automatically integrated with the posting processes in S/4HANA Cloud.

    - Main Features: Multi currency, Contract Migration, CPI adjustments, Statistical valuation rule, US GAAP as parallel ledger.

    - Valuation Balance report (Lease cockpit) that offers customers a multi-parameter view on lease balances (Liability periods, Right of use periods, Interest sums, Depreciation sums

    - Output management (create, print and reverse invoices)

    Scope items:

    - Lease-In Accounting (1T6)

    - Lease-In Accounting - Parallel Ledger (21P)

    - Lease-Out Accounting (21Q)

    - Service Contract (21R)

    - Intercompany Process for Sublease Accounting (2O9)

    - Lease-Out for Sublease Accounting (2SB)

    - Lease-Out for Sublease Accounting - Parallel Ledger (2SA)

    - Lease-In Accounting - Group Ledger US GAAP (34N)

    - Lease-Out for Sublease Accounting - Group Ledger US GAAP (34O)

    Please check the availability of scope items for the countries that you plan to implement.

    For licensing and pricing details, please reach your SAP Account Executive.

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