SAP S/4HANA Cloud for Finance Compliance as a …

1 SAP eXperienceDay sap s /4 HANA Cloud : l ERPas a Service -21 febbraio2018 sap s /4 HANA Cloud for Finance Compliance as a Service Giuseppe Lillo, PresalesSpecialist, SAPCore ERPC omplianceAsa BurdenCUSTOMSOFTWAREFINANCECore ERPCORE FINANCEC omplianceAsa ServiceIntelligentERPF ocus on IFRS 165 INTERNAL 2017 SAP SE or an SAP affiliate company. All rights reserved. New leasing standards released by FASB and IASBNew Leasing regulations to add $3tn of leases to balance sheets globally$3 trillionof lease commitments will come onto the balance sheets of affected companies*Operating leases can no longer be treated as "off balance sheet". Every IFRS and US-GAAP reporting company will be impacted* Source: Financial Times6 PUBLIC 2017 SAP SE or an SAP affiliate company. All rights reserved. SignificantChangesfor Balance SheetsIAS 17 IFRS16 Finance leasesOperating leasesAllleasesAssetsLiabilities$$$$Off balance sheetrights/ obligations$$$$7 INTERNAL 2017 SAP SE or an SAP affiliate company.

2 All rights reserved. Cloud for Contract &Lease ManagementContracttypesLease-inLease-out Service ContractSublease*S/4 HANA Cloud for Contract & Lease Management: Contract types* Planned for 1802 S/4 HANA Cloud for Contract & Lease Management helps customers standardize their Lease-in, Lease-out and Service contract management activities Planned for 1802: enablement of Sublease contracts** enabling intercompany and external leasing scenarios to support comprehensive and complex leasing processes that comply with the new regulations. Lease contracts describe contractual agreements between two partners: theLessorand theLessee. The lessor is the owner of an asset, the lessee has a right of use asset during the period of time agreed in the lease contract. For the use of the asset, the lessee must pay lease payments, which are agreed in the lease objectReal Estate, Machinery, Equipment, Vehicles, Computer hardware, etc Covering real estate, as well as machinery, equipment, vehicles and computer hardware.

3 Additional contract attributes can be defined by customer 8 INTERNAL 2017 SAP SE or an SAP affiliate company. All rights reserved. S/4 HANA Cloud for Contract & Lease ManagementIntegrated Leasing Scenario Classification and evaluation rules Calculate and report on net present value, depreciation, repayment and interest rate Change management / Re-valuation Support transition scenarios Create / Link to fixed assetsValuation and Classification 5 different lease types for lease in, lease out and service contract Leasing partners Top 10 predefined types of contract items Terms and conditions for notice and renewal options (validity) Lease payment cash flow with full integration Critical dates and reminders Document managementContract Management Multi-GAAP enabling (IFRS, US GAAP, HGB) Manage right-of-use assets and liabilities Customer / Vender accounting Post depreciation and repayments Lease payments Controlling / Profit center accountingMulti-GAAP PostingDEMOBUSINESS PARTNERLEASE CONTRACTLEASE CONTRACTLEASE CONTRACTGL PostingGENERAL LEDGERASSET ACCOUNTINGRoAMasterdataGL PostingGL PostingCredit: AccumulateddepreciationJournal Entry APICONTRACT & LEASE MANAGEMENTAdd-onRoADebit: RoACredit: Finance LeaseLiabilityCredit: Finance LeaseLiabilityDebit: InterestExpensesCredit: LeaseReconcilAccountDebit: Finance LeaseLiabilityTIME 1 TIME 2 CONTRACT DIGITIZATIONACCOUNTS PAYABLED ebit: DepreciationCORE ERPS/4 HANA CLOUDPROCUREMENTUNIVERSAL JOURNAL13 2018 SAP SE or an SAP affiliate company.

4 All rights you!Giuseppe LilloPresales Specialist, sap s /4 HANA Cloud , SAP M: +39 3428650133E.