IFRS compliant accounting with cuContract
IFRS 15 & IFRS 16: The SAP Contract Management Solution
IFRS 15 and IFRS 16 set high standards for costing and accounting systems. With the contract management software cuContract, you can meet these requirements and always do your accounting in accordance with IFRS.
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!
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!
Content
- 01 Classification and inventory of contracts according to IFRS
- 02 Benefits of the contract management for IFRS 15 & IFRS 16
- 03 IFRS 15 - revenue from contracts with customers
- 04 IFRS 15 at a glance
- 05 IFRS 16 - leases
- 06 IFRS 16 at a glance
- 07 Technical aspects & SAP certificates of the IFRS 15 & IFRS 16 software
- 08 Project plan for the implementation of cuContract for IFRS 15 & IFRS 16
- 09 Your contact for questions about SAP contract management IFRS 15 & 16
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
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: Revenue from contracts with customers
From January 1, 2018 onwards IFRS 15 requires firms to document their revenues differently in the invoices if they offer products and corresponding services as a bundle (multi-component contracts). Examples of such contracts are mobile telephone contracts including a device, software including support, or production equipment including the training of the users. For the companies, the new regulations consequently go hand in hand with significant changes in the accounting routines.
The contract management software cuContract prepares you for the update of IFRS 15. The solution facilitates the required capturing and inventory of the contracts, as it bundles all of the documents, invoices, information and value flows in audit-compliant electronic records.
The contracts can be classified via check boxes and the decision parameters can be documented in the contract via notes. These measures ensure the obligation for documentation according to IFRS 15.
cuContract comes with an invoice plan which calculates the accounting figures and channels all of the revenue and cost flows (once or periodically). In this way you can flexibly and quickly react to changes in the accounting routine and always ensure an accounting that is in line with IFRS 15.
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
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!
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.
IFRS 16 at a glance
- Contract inventory via interfaces to SAP RE-FX, SAP SRM, SAP MM
- Automated classification and categorization of contracts
- Documentation of evaluation decisions
- Creation of several value flow time lines
- Result driven verification and re-evaluation
- Overview on process in its entirety
- Wide range of analysis, reporting and simulation options
- Overview of all contracts and contract relations (including non-IFRS)
- 100% integration into SAP systems
Technical aspects & SAP certificates of the IFRS 15 & IFRS 16 software
The contract management software for IFRS 15 & IFRS 16 is available in two versions, for SAP ERP and SAP S/4HANA. Whatever system your company prefers to work with, the solution will integrate seamlessly. This is also confirmed by the certifications ‘SAP Certified – Powered by SAP NetWeaver’ and ‘SAP Certified – Integration with SAP S/4HANA.’
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.
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!
