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Read the CFO's Guide to Financial Transformation

Posted by Bramasol Financial Transformation Team on Mon, Jan 15, 2018 @ 12:23 PM

FinancialTransformation-HotTip.jpgCorporate finance professionals face many challenges. They need to reduce the amount of time spent on inefficient month-end/year-end closing processes, improve their ability to extract timely and accurate financial information and streamline overall operational end-to-end business processes.

On the regulatory front, CFOs also must deal with, Revenue Recognition Changes (ASC 606 and IFRS 15), Lease Accounting Changes (ASC 842 & IFRS 16), Financial Instruments Impairments & Disclosures (IFRS 9) as well as on-going changes in the global regulatory environment.

The accelerating set of new challenges and changing compliance requirements threatens to overwhelm the inherent limitations of existing legacy finance and ERP systems. As companies undertake Financial Transformation to improve their ability to be nimble, react quickly and take advantage of market trends, several key things are emerging:

  • Drive to continuous close
  • Consolidation of data sources for reporting
  • Improved visibility for compliance with new standards for Revenue Recognition, Leasing and Financial Impairments
  • Real-time cash management

Some of the key Financial Transformation opportunity areas include: 

  • New-generation architectures, such as SAP S/4HANA, that combine core ERP & Finance systems with plug-in modular best-of-breed capabilities for revenue recognition, leasing, ecommerce, HR, travel, supply chain management, and more.
  • A “single-source-of-truth” approach that avoids discussions of who’s data is right, thereby enabling much faster and better tactical decision-making.
  • Cloud-based implementation options that can greatly reduce time-to-operation and which integrate seamlessly with in-house implementations to enable cost optimization along with flexibility and scalability to support growth.
  • Advanced real time analytics and user interface (UX) technologies that can access information throughout the unified systems and provide easily tailored comprehensive reporting for ongoing management or ad hoc decisions.

Corporate finance professionals depend on the technologies and tools that provide critical information they need to drive timely decisions and to anticipate emerging issues that could impact the business.

By leveraging the in-memory data and processing capabilities of the SAP S/4HANA architecture and S/4HANA Cloud deployment scenarios, CFOs can seamlessly unify their information landscape to remove the gaps and ease the pain-points arising from the artificial segmentation of information.

Instead of always grappling with reassembling disparate pieces of the picture this "single-source-of-truth" approach enables CFOs and staff throughout the company to see a holistic real-time view that encompasses all operational data sets and analysis capabilities within a single unified architecture. In addition to improving both the access to and the ability to manipulate information, S/4HANA also dramatically improves real-time analytics performance because nothing must be moved, massaged or reconciled before the analysis.

To learn more, read the CFO's Guide to Financial Transformation

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Topics: FinancialTransformation-Hot-Tips

FASB Proposes Improvements to Lease Standard Implementation

Posted by Bramasol Leasing Administration Team on Mon, Jan 8, 2018 @ 05:07 AM

LeaseAdministration-HotTip.jpgOn January 5, 2018, the Financial Accounting Standards Board (FASB) issued a proposed Accounting Standards Update (ASU) regarding the new lease accounting standard ASC 842.

The proposed ASU is intended to reduce costs and ease implementation of the Leases standard for financial statement preparers.  Stakeholders are encouraged to review and provide comment on the proposed improvements by February 5, 2018.

Two key proposed changes in this ASU deal with comparative reporting during the transition period and a practical expedient for simplifying the requirements to separate nonlease components of a contract.  Summaries of the proposed changes are below.

Transition:

"Comparative Reporting at Adoption The amendments in this proposed Update would provide entities with an additional (and optional) transition method to adopt the new lease requirements by allowing entities to initially apply the requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with the request by preparers. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which the entity adopts the new lease requirements would continue to be in accordance with current GAAP (Topic 840), including disclosures." 

Separating Components of a Contract:

"The amendments in this proposed Update would provide lessors with a practical expedient, by class of underlying assets, to not separate nonlease components from the related lease components and, instead, to account for those components as a single lease component, if both of the following are met: 1. The timing and pattern of revenue recognition for the nonlease component(s) and related lease component are the same. 2. The combined single lease component would be classified as an operating lease. A lessor electing this proposed practical expedient would be required to disclose the class or classes of underlying assets for which it has elected the practical expedient and the nature of the nonlease components included within the single lease component."

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Read the FASB Press Release Here.

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Topics: Leasing-Hot-Tips

SEC Office of Chief Accountant Urges Careful Planning for Implementing ASC 842 Lease Standard

Posted by Bramasol Leasing Administration Team on Mon, Jan 1, 2018 @ 06:44 AM

LeaseAdministration-HotTip.jpgWith arrival of 2018, many companies are now shifting into a higher gear toward implementation of the new lease accounting standards, ASC 842 and IFRS 16. 

In recent remarks, Michael P. Berrigan, Professional Accounting Fellow, Office of the Chief Accountant, SEC, provided an update on key implementation issues and alerted companies of the importance of careful implementation planning - starting as soon as possible.

Among the issues that Berrigan emphasized were:

  • Identification of contacts that represent or contain a lease is a key step.
    "This step is necessary to fully assess the scope of contracts subject to the new standard. Once the complete inventory of contracts is identified and analyzed, I believe a company can among other items, better assess the additional level of effort required for implementation."

  • Transition guidance differs from the guidance applied on a go-forward basis under ASC 842.
    "I would encourage entities to educate themselves on these differences during implementation and continue to follow the Financial Accounting Standards Board’s (“FASB”) recent standard setting activities to allow sufficient time to gather relevant information to apply both the transition and general provisions of the standard."

  • Careful Implementation Planning, Management and Oversight are Necessary
    "Leveraging lessons observed from the revenue implementation efforts, I encourage entities to plan and manage lease implementation activities to allow for adequate time to formulate reasonable judgments in the application of the standard and evaluate any necessary changes in Internal Control over Financial Reporting (“ICFR”) that will be required to support ASC 842."

Click here to read the full remarks from Mr. Berrigan.

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Click Here to Learn More About Bramasol Solutions for Lease Accounting

 

 

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Topics: Leasing-Hot-Tips

The RevRec Deadline is Here! Open This for Answers.

Posted by Bramasol RevRec Team on Mon, Dec 25, 2017 @ 04:24 PM

RevRecReady-HotTip.jpgThe deadline for new Revenue Recognition standards, ASC 606 and IFRS 15, is arriving on January 1, 2018. Yes, that is next week!

Many companies have been working diligently over the past year or more to get ready. Bramasol has actively been working with lots of them to provide software solutions, data migration services, consulting on best practices, Proofs-of-Concept (POCs), Pre-Built Disclosure & Compliance reports, and overall change management assistance.

Of course, not everyone is perfectly ready to go.  We know this because thousands of attendees in our monthly RevRec webinars over the past two years have told us via their responses to survey questions. 

The good news is that it's not too late! Yet! (But it will be soon)

The first quarter of 2018 will be an absolutely crucial time for making sure that the most important steps and processes are in place for timely data collection and compliance reporting.

Our Bramasol Center of Excellence experts in Revenue Recognition are seeing a surge of companies that are looking for answers to key questions such as: 

  • What should you definitely have done by now in the implementation process? 
  • How can I make sure that my data migration is on track? 
  • What's the difference between data migration and transition processes? 
  • What are the reporting requirements in the near term and over the next year? 
  • What changes are considered "material" and how/when do we address them in our standard disclosure reporting processes? 
  • How can we coordinate the go-live processes between IT and Finance? 
  • What comes next to ensure long-term success? 

If you'd like catch up now so you can avoid the dire consequences, regulatory sanctions, financial impacts and stock market impacts of being judged non-compliant...

Or, if you just want to make sure that all your efforts thus far are coming together to meet requirements of your auditors and other key stakeholders such as your Board of Directors and shareholders...

Then you're in luck! 
There's one more present to open as you leave 2017!

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Contact Bramasol's RevRec Experts for a Free Demo and consultation.



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Topics: revenue recognition, revrec hot-tips

Accelerate Expense Management with Financial Transformation in the S/4HANA Digital Core

Posted by Bramasol Financial Transformation Team on Tue, Dec 19, 2017 @ 06:01 AM

FinancialTransformation-HotTip.jpgThe SAP Digital Core is built around the S/4HANA architecture, which combines in-memory data and processing capabilities for maximum performance and scalability, along with a consistent interface for integrating virtually any other applications. Using S/4HANA Cloud, CFOs can seamlessly unify their information landscape to remove gaps and ease the pain-points arising from the inefficient segmentation of information.

This new eBook provides an overview along with a step-by-step use-case example showing the seamless interaction of SAP S/4HANA Cloud ERP with SuccessFactors and Concur. This example follows the process of setting up a newly hired employee in SuccessFactors and then shows how that employee uses Concur to record their travel expenses to attend an orientation session.

The process illustrates how the S/4HANA Cloud platform provides a centralized single-source-of-truth to synchronize activities in these native best-of-breed applications.

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Important benefits of this Digital Core integration include:

  • Synchronization of related processes using a common data set
  • Acceleration of processing steps by eliminating re-entry of data
  • Reduction of the risks of errors and inconsistencies between applications
  • Improvement of visibility and auditability for enhanced control

In summary, the seamless interaction between SuccessFactors, Concur and S/4HANA Cloud in the Digital Core provides an integrated process for carrying out these related activities within a single unified data environment and without having to unnecessarily re-enter data or reconcile separate applications.

Click Here to Download the eBook Expense Management with S/4HANA Cloud, Concur and SuccessFactors.

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Topics: FinancialTransformation-Hot-Tips

Compliance Reporting and Financial Transformation Go Hand-in-Hand

Posted by Bramasol Financial Transformation Team on Tue, Dec 12, 2017 @ 06:35 AM

FinancialTransformation-HotTip.jpgOften times the day-to-day world of CFOs and their staff can feel like living in a blizzard of multi-tasking in which they are buffeted by winds blowing in many different directions. 

They are faced with a constant juggling act between the demands of regulatory changes, compliance reporting, audit requirements and the all-important role of providing strategic financial management of the company.

In working closely with many companies on implementing regulations such as ASC 606, IFRS 15, ASC 842, IFRS 16 and others, at Bramasol we have consistently worked to help CFOs deal with the specific compliance reporting mandates within a broader context of Financial Transformation.

For example, for RevRec, we have pioneered new integrated methods enabling companies to use SAP RAR in conjunction with SAP ERP/ECC, SAP S/4HANA Cloud, SAP Cloud Analytics and third-party legacy software to aggregate, prepare and analyze the relevant revenue detail for disclosure reporting purposes. We have also created a series of specific pre-built reports for statutory compliance that enable CFOs to make the required disclosures as an integrated part of running the enterprise.

Bramasol’s end-to-end integrated solutions for revenue recognition compliance fit seamlessly within any existing operational and financial systems while providing the detailed information, audit trail, aggregation methodologies and advanced analytics to support statutory disclosure reporting. 

Read the eBook on RevRec Disclosure Reporting

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Topics: FinancialTransformation-Hot-Tips

RevRec: FASB Update Regarding Principal vs Agent Considerations

Posted by Bramasol RevRec Team on Mon, Dec 4, 2017 @ 01:25 PM

RevRecReady-HotTip.jpgFASB Issues Accounting Standards Update 2016-08

Revenue from Contracts with Customers
Principal versus Agent Considerations

An issue discussed by the Transition Resource Group (TRG) for Revenue Recognition relates to when another party, along with the entity, is involved in providing a good or a service to a customer.

In those circumstances, Topic 606 requires the entity to determine whether the nature of its promise is to provide that good or service to the customer (that is, the entity is a principal) or to arrange for the good or service to be provided to the customer by the other party (that is, the entity is an agent).

This determination is based upon whether the entity controls the good or the service before it is transferred to the customer. Topic 606 includes indicators to assist in this evaluation. Discussions at TRG meetings informed the Board about implementation issues related to the guidance on principal versus agent considerations, including:

  1. Identifying the unit of account at which an entity should assess whether it is a principal or an agent
  2. Identifying the nature of the good or the service provided to the customer (for example, whether it is a good, a service, or a right to a good or service)
  3. Applying the control principle to certain types of transactions, such as service arrangements 4. Interaction of the control principle with the indicators provided to assist in the principal versus agent evaluation.

To address those issues, the Board decided to add a project to its technical agenda to improve Topic 606 by reducing:

  1. The potential for diversity in practice arising from inconsistent application of the principal versus agent guidance
  2. The cost and complexity of applying Topic 606 both at transition and on an ongoing basis.

Who Is Affected by the Amendments in This Update? The amendments in this Update affect entities with transactions included within the scope of Topic 606. The scope of that Topic includes entities that enter into contracts with customers to transfer goods or services (that are an output of the entity’s ordinary activities) in exchange for consideration.

For more information, read the FASB Update here.

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Topics: revrec hot-tips

Kick-off Meeting for New SAP Leasing User Group on December 5, 2017

Posted by Bramasol Leasing Administration Team on Mon, Nov 27, 2017 @ 05:07 PM

LeaseAdministration-HotTip.jpgWe are excited to announce the formation of a new SAP Leasing User Group and pleased to invite you to the first online meeting:
December 5, 2107 at 9 AM PST - 12 PM EST.

The purpose of the Leasing User Group is to bring together SAP, customers and partners in a community to share information on the latest features, roadmap and updates on the SAP Lease Administration by Nakisa (Lease Administration) and SAP Real Estate Management (ReFX) solutions.  

You will hear from the SAP product leaders, Pete Graham and Tom Andersen, as well as, Nakisa and others.   Product experts will be on hand to answer your questions live.

Click Here to Register to Attend the Leasing User Group Kickoff Meeting

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Topics: leasing, Leasing-Hot-Tips

Five Tips from CEOs & How Financial Transformation Can Help Achieve Them

Posted by Bramasol Financial Transformation Team on Tue, Nov 21, 2017 @ 06:17 AM

FinancialTransformation-HotTip.jpgAs we look toward the start of 2018 and face a new year full of challenges, it's a good time to reflect on how we to keep improving our companies and our personal lives.

This blog post from Korn Ferry outlines 5 Tips from CEOs at the WSJ CEO Conference:

  • Agility – you must remain agile and be able to move quickly and execute that change decisively
  • Culture – comes from the top
  • Keep Learning – If you aren’t learning you are stagnating
  • Stay Focused on Goals – focus is the only way to know where to put your energy to maximize chances of success and impact
  • Maintain Work-Life Balance

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So what does this mean for us in the world of SAP and “finance transformation?”  Simply, this:  Leveraging dashboards and analytics supports all of these.

Agility – In an ever changing world the pace of change accelerates and real time is no longer fast enough.  You need insights that lead to action.

Culture – By focusing on analytics and objective measures you promote decision making that is objective and insightful.  And with a single source of truth, such as in SAP Analytics Cloud, you can promote a learning organization and dialog that solves problems not debates the source of data.   You can even leverage predictive analytics to help drive further insights and discuss plans.

Learning – While learning comes in many forms, the use of statistics and analytics to promote a learning organization is essential.  The success of learning comes not simply from telling people they should take courses, read books and watch videos, it comes from creating a culture of learning.  Learning from our mistakes, learning from our successes and learning by asking questions and having the data and tools you need to support and encourage the learning.

Focus/Focus on Goals – the use of analytics and tools requires you have a set of specific goals against which you are tracking your goals.  Whether the goals are corporate, such as Price Earnings Ratio, Profitable Revenue Growth, Market Share or Cash Generation or department focused such as Cost Per Lead, time it takes to produce book close or similar, goals are essential to maintain focus.  Metrics, tools and analytics are essential to measuring progress against the goals and maintaining that focus.

Work-Life Balance – by having clear statistics and easy to use tools we can free people up to do the real work in less time.

Visit here to learn more about Financial Transformation

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Topics: FinancialTransformation-Hot-Tips

Join Us for SAP RAR User Group on November 16, 2017

Posted by Bramasol RevRec Team on Wed, Nov 15, 2017 @ 04:20 AM

Reminder! 

SAP Revenue Accounting and Reporting (RAR) User Group
November 16, 2017 - 12:00 PM EST - 9 AM PST

The next (Eleventh) user group meeting will be held this Thursday November 16, 2017 from 12:00 PM EST - 1:00 PM EST (9:00 AM - 10:00 AM PST). 

Pete Graham, Director Finance Solutions and Mobility, SAP, will cover updates on SAP Revenue Accounting and Reporting (RAR) 1.3 SP03, followed by a Q&A session with attendees.

Register Here to attend the SAP RAR User Group meeting online.

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Topics: SAP RAR

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