IFRS compliant accounting with cuContract

IFRS 15 & IFRS 16
the SAP Contract
Management Solution

triad: three circles with pictures of business people shaking hands, screen with diagrams, laptop keypad | SAP contract management for IFRS 15 & IFRS 16

The International Financial Reporting Standard 15 (revenue from contracts with customers) and IFRS 16 (leases) impose high demands on costing and accounting systems since becoming effective in 2018/19. Companies are required to re-evaluate their existing leases and to gather missing data for invoicing. In many cases, an adjustment of the existing processes is inevitable. With the SAP-integrated contract management software cuContract you always do your accounting in compliance with IFRS!

Mockup product sheet IFRS 15 & IFRS 16
Product sheet: SAP Contract Management for IFRS 15 & 16

IFRS 15 and IFRS 16 impose high demands on costing and accounting systems. With the SAP integrated contract management software cuContract you always do your accounting IFRS compliant!

Download product sheet cuContract for IFRS 15 & 16!

Content

Classification and inventory of contracts according to IFRS

The new demands can be fulfilled today with the contract management solution cuContract. The software facilitates the required contract inventory, classification and determination of values. These processes are based on respective decision parameters which evaluate whether a contract is subject to IFRS. The “decisions” are documented within the contract management system and thus can be traced at any time.

Departmental correlations for accounting according to IFRS 15 &16

Departmental correlations for accounting according to IFRS 15 &16

Benefits of the contract management for IFRS 15 & IFRS 16

  • Prepares the contracts for inventory and classification
  • Documents the qualitative and quantitative characteristics (obligation of documentation)
  • Can be assessed via Excel-based reporting (cuPower Creator)
  • Intuitive operation of web-based interface
  • Import options on the basis of Excel spreadsheets
  • Offers connections to a range of document archives
  • Offers interfaces to adjoining functions of the SAP system
  • Audit-compliant digital records
  • Wide range of analysis and reporting functions
  • 100% integration into SAP systems

IFRS 15 at a glance

  • Automated inventory of the SAP RE-FX contracts
  • Creation of different value flow time lines (e.g. planned payment flows vs. financial allocation of sales)
  • Segmentation of transaction prices
  • Calculation of totals of the different contractual obligations
  • Allocation of resulting costs
  • Overview on process in its entirety
  • Periodical and event driven re-evaluation of contracts
  • Notes function for documenting the decision parameters
  • Wide range of analysis, reporting and simulation options
  • Overview of all contracts and contract relations (including non-IFRS)
  • 100% integration into SAP systems
Mockup product sheet IFRS 15 & IFRS 16
Product sheet: SAP Contract Management for IFRS 15 & 16

IFRS 15 and IFRS 16 impose high demands on costing and accounting systems. With the SAP integrated contract management software cuContract you always do your accounting IFRS compliant!

Download product sheet cuContract for IFRS 15 & 16!

IFRS 16 - leases

From January 1, 2019 onwards the new IFRS 16 standard requires the lessee to use only one single accounting model by which all leases have to be documented in a reportable manner. This also applies to tenancies, such as the rental of equipment, copy machines, office space or company vehicles. In consequence, firms have to prepare for significant additional efforts and costs. Moreover, existing leases need to be reassessed and missing data gathered for invoicing.

The contract management solution cuContract specifically addresses the new requirements of IFRS 16. It processes theinventory of the contracts in an automated manner via a range of interfaces with the SAP system, which leads to shorter handling times.

In addition, cuContract also facilitates the required re-evaluation of the leases as all of the data, contracts and payment flows can be seen at a glance in the electronic record. Data that has not been captured for invoicing yet can be added at any time. The notes function makes it possible to document the decisions made during the evaluation process in an audit compliant manner and thus to fulfill the obligation for documentation stipulated by IFRS 16.

cuContract helps you to fulfill the new requirements of lease accounting in line with IFRS 16.

Project plan for the implementation of cuContract for IFRS 15 & IFRS 16

The implementation of the contract management software cuContract for IFRS 15 & IFRS 16 follows clearly defined and customized project steps.

During a first kickoff meeting with valantic experts the project gets structured. This is followed by installation and setup of the standard software. In workshops the individual needs of the users are identified and described in a written concept, followed by an individual customizing by valantic. Key users are trained and introduced to all functions of the software, even before the contract management for IFRS 15 & 16 goes live.

Our experts will be available at all time for technical support or questions and can also make adjustments and extensions if the users’ needs change.

valantic project plan as a roadmap
Mockup product sheet IFRS 15 & IFRS 16
Product sheet: SAP Contract Management for IFRS 15 & 16

IFRS 15 and IFRS 16 impose high demands on costing and accounting systems. With the SAP integrated contract management software cuContract you always do your accounting IFRS compliant!

Download product sheet cuContract for IFRS 15 & 16!

Your contact for questions about SAP contract management IFRS 15 & 16

Portrait of Stefan Heins, Managing Director at valantic Enterprise Solutions GmbH

Stefan Heins

Managing Director
valantic Enterprise Solutions GmbH