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New Rapid Compliance Solution for Lease Accounting Standards ASC 842 and IFRS 16

Posted by Bramasol Leasing Administration Team on Tue, May 15, 2018 @ 12:00 AM

LeaseAdministration-HotTipBramasol, the leader in compliance and finance innovation solutions, has announced a new, purpose-built product that reduces complexity and implementation costs, to give companies across a variety of industries a ready-to-deploy solution for lease accounting disclosure reporting and compliance.

In 2016, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) issued new standards for lease accounting: IFRS 16 & ASC 842, which must be implemented by 2019. Both IFRS 16 and ASC 842 are the result of a joint effort between the IASB and FASB to meet the objective of improved transparency, comparability and financial reporting.  These changes will impact virtually all companies, whether lessors or lessees.

Since the new leasing standards-setting process began, Bramasol has been at the forefront of addressing critical issues to help our customers get ready for both IFRS 16 and ASC 842. We have developed the Lease Administration Solution Engagement Roadmap (LASER) that brings together all compliance requirements, stakeholder needs and work-stream processes within a unified and disciplined implementation process.

The Rapid Leasing Compliance Solution further distills these overall efforts in a targeted solution, designed to help companies with straightforward leasing portfolios to cut through the complexity of the new standards and achieve compliance without excessive hassles or expense.

This purpose-built offering is designed for companies with up to 300 leases and includes:
- 5 Basic Scenarios for Real Estate, Movables, or both
- Set-up of Nakisa and/or RE/FX
- Standard data & document loading
- Security set-up
- Standard out-of-the-box disclosures and reports for ASC 842 or IFRS 16

Click Here to see more details on Rapid Leasing Compliance Solution

Rapid-Compliance-banner-social-new

 

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Topics: Leasing-Hot-Tips, ASC842, SAPLeaseAdmin, IFRS16, RLCS

New Webinar Series: Demystifying the SAP Cloud Platform

Posted by Bramasol Financial Transformation Team on Tue, May 8, 2018 @ 06:39 AM

FinancialTransformation-HotTip

A recent blog post by Bramasol CEO Dave Fellers posed this important question: "How does a company go about getting targeted cost-effective compliance in the near-term along with a transformative path forward to overall Finance Innovation?"

He also explained that "for companies that are already invested in SAP technologies, the answer is S/4HANA and S/4HANA Cloud."

Looking at the SAP roadmap, it is clear that S/4 HANA is the future for all SAP-based companies and that virtually everyone will undertake migration projects to implement S/4 HANA over the next two to three years.

Given the reality of S/4 HANA as the core SAP technology platform, with the excellent and cost-effective S/4 HANA Cloud functionality available right now, Bramasol believes in charting a path that takes maximum advantage of today’s compliance-driven requirements to usher in tomorrow’s financial transformation.

The SAP Cloud Platform is SAP’s platform-as-a-Service allowing companies to extend and personalize on premise or cloud apps, build new and differentiating apps or integrate and connect cloud and on-premise apps to make digital access simple and streamlined.

Join SAP for this new six part webinar series to hear from SAP experts and third party analysts on key topics to help demystify and clarify many aspects of the SAP Cloud Platform that in turn will lead you to make more informed and accurate decisions as you continue your journey to the cloud. 

The webinar topics are as follows:

Discover How to Solve Business Problems Faster with SAP Cloud Platform 
Date: Wednesday, May 9, 2018
Time: 8:00 a.m. PDT / 11:00 a.m. EDT

Discover why SAP Cloud Platform stands out from the pack
Date: Thursday, May 24, 2018
Time: 8:00 a.m. PDT / 11:00 a.m. EDT

How SAP Jam can help modernize your intranet quickly and accelerate time to value
Date: Thursday, June 14, 2018
Time: 8:00 a.m. PDT / 11:00 a.m. EDT

Key considerations in choosing data persistence options in SAP Cloud Platform
Date: Thursday, June 28, 2018
Time: 8:00 a.m. PDT / 11:00 a.m. EDT

The Apple/SAP Partnership: Delivering Next Gen Intelligent Apps for the Enterprise
Date: Thursday, July 12, 2018
Time: 8:00 a.m. PDT / 11:00 a.m. EDT

Myth busting: Separate fact from fiction when considering your SAP cloud journey
Date: Thursday, July 26, 2018
Time: 8:00 a.m. PDT / 11:00 a.m. EDT

We urge you and your staff to attend one or more of these webinars to build a better awareness of the opportunities available with S/4HANA Cloud Platform. Click here to register for SAP Cloud webinars.SAP Cloud Platform webinar series

In the meantime, if you want some personalized help to understand specifically how these technologies can be applied to your business, click here to request a consultation and S/4 HANA demo from Bramasol experts.

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Topics: FinancialTransformation-Hot-Tips, finance innovation

Join SAP Leasing User Group Meeting at EXXON, May 3, 2018

Posted by Bramasol Leasing Administration Team on Mon, Apr 30, 2018 @ 11:11 AM

LeaseAdministration-HotTipSAP Leasing User Group

Hosted by ExxonMobil
(Options for In-person or Online Attendance)

May 3, 2018 - 10 AM PDT / 1 PM EDT

Join us for the latest SAP Leasing User Group Meeting hosted by ExxonMobil, Bramasol and SAP. Pete Graham will chair a robust discussion on the latest issues and challenges on SAP Leasing Solutions. Solution and Accounting experts from Bramasol and Nakisa will be onsite to provide additional insights into the product and project based experience.

If you are looking for real answers on how you can use the SAP solutions to comply with ASC 842 and IFRS 16, then this is the place for you. The discussion will include ample opportunity for open Q&A to allow participants to get answers to specific questions.

Please join us in person at ExxonMobil for what promises to be a great meeting. 

ExxonMobil Global Services Company
22777 Springwoods Village Parkway (W1.4A.345) 
Spring, Texas USA 77389

This will be available both in person and as a remote dial-in for those who cannot attend in person.

Register Here to Attend Online 

If you plan to attend in person, please email your Name, Email and Company to jfroelich@bramasol.com and we will add you to the list.

LeaseAccounting

Looking forward to seeing you there!

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Topics: Leasing-Hot-Tips, SAPLeaseAdmin

Explore how a fast-growing Pharma company turned to Bramasol to bring in systems to support their larger operations

Posted by Bramasol Financial Transformation Team on Thu, Apr 26, 2018 @ 08:10 AM

Our customer is an American manufacturer and multi-level marketing global giant which specializes in skincare products. They have built a premium skincare brand on a legacy of innovative dermatology-inspired skincare products which in turn are backed by clinical results.

The main problem the customer faced was that their hyper-growth was getting increasingly constrained by legacy systems which were transaction-based instead of process-based. Their 100% YoY growth was held back by the lack of business processes and automation, capable of handling near & long term growth plans. The best suited solution recommended by Bramasol was SAP Cloud ERP which was utilized to proactively automate their business value chain to support significant growth plans, and also integrated order entry, 3PL, and credit card processes.

 Project Drivers:

  • Replace legacy system - Replace the current system(s) with a new ERP solution to integrate all critical processes
  • Prepare for growth - The current system(s) were not able to handle the anticipated growth.
  • Better Control on Billing Cycle - Establish all steps of the billing cycle in one system with improved control and compliance checks
  • Transparency of Information - Improve management decisions through better reporting
  • Integrated Solution - Establish all critical business processes in one fully integrated system
  • Better manage operational cost - Retire all legacy systems, hardware and maintenance with a SaaS solution
  • Process efficiency - Utilize the best practices embedded in the SAP Business ByDesign solution

Fast Growing Pharma Company customer story

 How Bramasol Assisted:

  • Implemented SAP Cloud ERP to automate & support their key value chain operational processes.
  • Full Data Migration
  • Full automation of online order entry (Sales Order to Delivery to Customer Invoice), 3PL, and credit card processes

If you want to leverage significant new technology trends to get ahead of the curve on new requirements while fundamentally transforming and unifying financial systems; Do what many high growth companies have done contact Bramasol.

 

 

check our other customer stories here

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Topics: Success Story, Customer Story, finance innovation, pharma

Compendium of Most Popular RevRec Blog Posts

Posted by Bramasol RevRec Team on Tue, Apr 24, 2018 @ 05:30 AM

RevRecReady-HotTip-12-1Sometimes as you move forward, it can also be helpful to take a look back and see how far we've come. 

During the past three years, Bramasol has been at the forefront of thought-leadership, creating purpose-built solutions, and helping customers with implementation projects in the Revenue Recognition arena.

We firmly believe that companies can proactively leverage compliance with RevRec (ASC 606 and IFRS 15) and Lease Administration (ASC 842 and IFRS 16) to help drive overall Finance Innovation initiatives.

As a RevRec industry leader and primary co-innovator with SAP on development and deployment of Revenue Accounting and Reporting (RAR) application, Bramasol has continuously published ebooks and hosted webinars on a wide range of RevRec topics.

Below are some of the most popular RevRec blog posts from the past few years:

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LEARN MORE:
Join Bramasol at SAPPHIRE NOW and ASUG Annual Conference, June 5-7, 2018 in Orlando, FL

As leaders in compliance solutions, Bramasol will be showing the latest updates on RevRec and Lease Accounting as well as purpose-built packages and adaptable technologies for optimizing compliance within overall Finance Innovation solutions. We will be demonstrating the newest releases of SAP Revenue Accounting and Reporting (RAR) and SAP Lease Administration by Nakisa. In addition, you can see our purpose-built, turnkey packaged offering, RevRec Ready Rapid Compliance Solution for disclosure reporting.

 

 

 

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Watch how Bramasol helped a leading High-Tech Equipment manufacturer rapidly comply with RevRec ASC606 & IFRS 16

Posted by Bramasol RevRec Team on Thu, Apr 19, 2018 @ 05:18 AM

The customer is a leader in the field of networking solutions, and designs, manufactures a variety of solutions from PIC and ASIC chips to complete hardware and software systems. These systems empower network operators to scale network bandwidth, accelerate service innovation and automate optical network operations. Service providers, cloud operators, governments and enterprises across the globe rely on their Intelligent Transport Networks to enable services that create rich end-user experiences based on efficient, high-bandwidth optical networking.

Once the customer decided to quickly comply with ASC606 & IFRS 16 and finalized on the SAP RAR 1.1 solution, they needed a partner that not only understood SAP RAR well but had a credible track record working with the high-tech industry. They were especially concerned with large data migration challenges that would require both standard as well as custom migration strategies.

With over 20 years of experience working with the High-Tech industry, Bramasol was the partner of choice and we quickly helped them to Go-live on SAP RAR 1.1. One of the major drivers to achieving this was the way Bramasol leveraged BRF+ to provide a solid framework for driving RevRec decisions scenarios. A mix of standard and customized solutions was also used to enable a smooth migration of legacy data to RAR. Post go-live, Bramasol continues to be a valued partner providing the customer with ongoing specialized support.

 In the words of the customer “Bramasol was crucial to our successful on-time launch.

 

 


If you have a challenging or a complex RevRec Project or you feel compliance with ASC606, IFRS16 is difficult, do what the fortune 500 do.. Contact Bramasol

 CS-Global High Tech & Equipment Company

Check our other Customer Stories

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Plan Ahead to Join Bramasol at SAPPHIRE NOW and ASUG Annual Conference

Posted by Bramasol on Tue, Apr 17, 2018 @ 04:15 AM

Bramasol is excited to be at SAPPHIRE NOW and the ASUG Annual Conference, SAP’s biggest event of the year! Join Bramasol and learn the latest about our technology innovations and solutions for challenges facing the Office of the CFO in Orlando, June 5-7th’2018.

As leaders in compliance solutions, Bramasol will be showing the latest updates on RevRec (ASC 606 and IFRS 15) and Lease Accounting (ASC 842 and IFRS 16), as well as purpose-built packages and adaptable technologies for optimizing compliance within overall Financial Transformation solutions. We will be demonstrating the newest releases of SAP Revenue Accounting and Reporting (RAR) and SAP Lease Administration by Nakisa. In addition, you can see our purpose-built, turnkey packaged offering, RevRec Ready Rapid Compliance Solution for disclosure reporting.

You can stop by any time to see the latest from Bramasol at Booth Number: 1149.
Or join us for the following special sessions:

Session 1: ASUG11850 
Results Analysis with SAP Revenue Accounting and Reporting: Nuts and Bolts
Thu 11:00 a.m. - 12:00 p.m.  S331D
Chris Ritterhern - Bramasol

DescriptionIf your company’s revenue is project-driven, changes to the results analysis configuration associated with the SAP Revenue Accounting and Reporting application were either (a) a surprise or (b) a surprise. These changes were necessary for your process to function properly. Discover exactly what changed in results analysis and why.

Session 2: ASUG11142 
Disclosure Reporting and Analytics for the New Revenue Recognition Regulations
Thu 2:00 p.m. – 3:00 p.m. S320G
Trevor Lovegrove – Bramasol and Francie Gallagher - NextGen

Description: The SAP Revenue Accounting and Reporting application is a powerful tool to calculate and book numbers in compliance with the new regulations of ASC 606 and IFRS 15. Bramasol has developed a comprehensive package of reports and accelerators covering all mandated and operational reports. The presenters will discuss the analytics and reports and how they support projects for compliance.

Click here for more info on Bramasol's plans for SAPPHIRE. If you'd like to discuss your specific projects or requirements in Revenue Recognition, Lease Administration or Financial Innovation with S/4 HANA, click here to Book-A-Meeting.

Looking forward to seeing you at SAPPHIRE!

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Topics: SAPPHIRE

Learn how Bramasol Helped a leading Global Publisher with complex RevRec scenarios

Posted by Bramasol RevRec Team on Thu, Apr 12, 2018 @ 06:41 AM

The customer is a global publishing company, which specializes in academic publishing. The company publishes electronic and print books, journals, and encyclopedias, as well as training and educational materials. The organization markets its products to a number of segments including professionals, students, instructors, researchers and more.

The company faced challenging issues around Digital Media, Multi-currency Intellectual Property and other areas in digital publishing.  They needed a partner expert in SAP RAR and who could guide their SAP SI with RAR integration, data migration and testing challenges.

As the clear leaders in design and implementation of Revenue Recognition solutions, Bramasol was the natural choice. We brought in experts who worked with the SI to develop unique solutions to address all the challenges. After the execution of the project, Bramasol continued helping the customer with expertise and guidance in the rollout of their RAR solution especially with regard to Testing and Data Migration.

 

 If you can not watch the video here watch it on our YouTube channel Watch Customer Story Video

Customer Story_Global Publishing Company

If you have a challenging or complex RevRec project or simply want the leader in SAP Revenue Accounting, do what the Fortune 500 do, contact Bramasol.

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Compliance-Driven Finance Innovation: Putting the Pieces Together

Posted by David Fellers on Wed, Apr 11, 2018 @ 01:09 PM

Today’s corporate finance professionals face an accelerating set of new challenges, changing compliance requirements and global competitive pressures that threaten to overwhelm the inherent limitations of their existing legacy finance and ERP systems.

Most conventional finance management technologies have been in existence for decades and, while they offer a familiar environment, they have significant limitations when it comes to keeping pace with today’s complex and dynamically changing corporate challenges.

Some of the chronic challenges that arise from these limitations include:

  • Too much time and energy spent on inefficient month-end & year-end close processes
  • Difficulty acquiring and accessing accurate data for financial reporting
  • Time wasted reconciling reports based on conflicting data sets
  • Inability to extract timely ad hoc data for operational decision-making

Layered on top of these enduring issues are new challenges driven by major changes in the compliance and regulatory environment.  These include:

  • Revenue Recognition Changes (ASC 606 and IFRS 15)
  • Lease Accounting Changes (ASC 842 & IFRS 16)
  • Financial Instruments Impairments & Disclosures (IFRS 9)
  • General Data Protection Regulation (GDPR) for companies doing business in the EU

Of course, the overarching challenge facing CFOs is their responsibility to handle all the above issues while also providing strategic and tactical leadership to meet their companies’ business goals for growth, market share, and profitability amid increasingly dynamic and globally competitive environments.

In working with a wide range of companies, across multiple industries, our Bramasol team has seen a variety of mindsets on the part of C-Suite decision-makers when it comes to addressing these issues. 

Most people thankfully have now abandoned the “head in the sand” approach and are actively grappling with the reality that the need for compliance-driven changes can’t be ignored. 

But the majority of CFOs and CEOs can do more to fully embrace the new compliance regulations as an opportunity for driving transformative changes across the organization.  Many of these companies are attempting a piecemeal approach to compliance based on ad hoc point solutions, spreadsheets, and other short-term fixes. Ultimately, this limited-scope mind-set almost always costs more and delivers less than can be achieved with a broader and more integrated approach.

On the other end of the spectrum are proactive forward-looking company leaders who see these external compliance-driven change-drivers as major opportunities for truly transformative finance innovation.

As part of our efforts to serve the whole range of companies’ needs, from those that just want to put their toe in the water and comply to those who are proactively committed to financial transformation, we’ve focused on creating targeted purpose-built solutions for compliance that that also can readily integrate with big-picture financial transformation initiatives.

We fundamentally believe that Compliance Innovation lays the foundation for Finance Innovation.

So how does a company go about getting targeted cost-effective compliance in the near-term along with a transformative path forward to overall Finance Innovation?  Well, for those companies that are already invested in SAP technologies, the answer is S/4HANA and S/4HANA Cloud.  Looking at the SAP roadmap, it is clear that S/4 HANA will be the future for all SAP-based companies and that virtually everyone will undertake migration projects to implement S/4 HANA over the next two to three years. 

Given the near-future reality of S/4 HANA as the core SAP technology platform, coupled with the excellent and cost-effective S/4 HANA Cloud functionality available right now, we believe in charting a path that takes maximum advantage of today’s compliance-driven requirements to usher in tomorrow’s financial transformation.

Our immediate compliance activities have been focused on integrating purpose-built applications such as SAP Revenue Accounting and Reporting (RAR) for revenue recognition (ASC 606 and IFRS 15) along with SAP Lease Administration by Nakisa and SAP Real Estate (RE/FX) for lease accounting (ASC 842 and IFRS 16).  We augment these specialized applications with pre-packaged solutions such as RevRec Disclosure Reporting, Lease Data Extraction/Abstraction/Migration, SAP Cloud Analytics, Cloud for Planning and flexible integration tools that span existing ECC and SD environments with future-leaning S/4 HANA capabilities.

This forward-looking journey to the future with S/4 HANA and the digital core can effectively unify and integrate these four key arenas 1) Cloud-based technologies, 2) Data unification, 3) Mobile access everywhere and 4) People-oriented usability and personalized processes.

inside-blog-image-1-(002)

You might say we’re betting the farm on a future built around S/4 HANA, but in truth all companies that use SAP software today have already made that same bet.  They just may not have given the future much thought as they grapple with the pressing issues of today.  But, if we all stop and take a look ahead, it’s clear what is coming – and it is S/4 HANA, either on-premise or in the cloud (or both).

Those companies that acknowledge this reality today and align their near-term compliance efforts with an S/4 HANA enabled future, will reap the benefits by putting all the puzzle pieces together to not only Comply but also to Improve Customer Engagement, Increase Profitability, Better Manage Inventory and Assets, Streamline Operational Processes, and Optimize Cash Generation.

inside-blog-image-2-(002)

In summary, by creating Compliance Innovation solutions for today with built-in Finance Innovation and migration opportunities for tomorrow, companies can cost-effectively leverage a highly extensible technology-stack that limits any dead-ends or throw-away implementation efforts along the way, and positions them to grow and be nimble in a competitive environment while addressing new complex regulations.  A company cannot achieve Finance Innovation without mastering regulatory compliance in a streamlined and strategic manner.

To learn more about these opportunities, plan to visit Bramasol at SAPPHIRE NOW

 

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Improving Financial Transparency with Adoption of ASC 606

Posted by Bramasol RevRec Team on Tue, Apr 10, 2018 @ 06:15 AM

RevRecReady-HotTip-12-1Now that the adoption deadline for ASC 606 ( IFRS 15 for IFRS filers), revenue recognition for public entities has passed, the readers of companies’ financial statements should expect a much more robust financial reporting over revenue recognition.  

In addition to the new five step model, companies now are required to disclose in a separate footnote, a new set of data points both quantitative and qualitative  about the company’s revenue recognition processes.

The objective of the new standard is to “disclose sufficient information to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows. Entities can accomplish this by providing qualitative and quantitative information regarding its contracts with customers, the estimates and judgments used to measure its revenue, and the nature of any assets recognized related to the costs of obtaining the contracts.”

How extended payment terms can mask important revenue recognition info in financial statements:

In a recent article published on cfo.com by Vincent Ryan on March 27, 2018, titled “Controller Charged in Revenue Recognition Scheme” he states that the SEC charged a public company controller with fraud by using a number of “improper tactics” including extended payment terms and then goes on to say that the SEC noted in its enforcement order that “The fraud created the misperception that Maxwell’s ultracapacitor growth was far more successful than reality,”  Extended payment terms are very common tactics to entice potential customers into a sale because the customer will get the good or service now but will not have to pay immediately. From a company perspective, this will increase the revenue recognized but a reader of the company’s financial statements will not be able to assess the payments terms and whether there is a significant financing component embedded within the company’s revenue recognition accounting processes.

How ASC 606 new disclosure requirements can bring more transparency to financial reporting:

ASC 606 strives to change that issue by requiring significantly more disclosure regarding that missing piece of information and also will require companies to bifurcate the related interest portion from the revenue portion. It could also cause more questions from the readers of a company’s financial statements knowing that there is a significant financing component disclosure. 

Disclosure of Significant Financing Components:

One of the new disclosure requirements specifically relates to the existence of a significant financing component in a revenue contract. Therefore companies will now be required to disclose to the readers of their financial statements in the new revenue disclosure any effects of financing separately from contracts with customers. The nature of the disclosure will inform the reader about whether there is any significant financing components that are over one year old. This new disclosure will inform the reader that the company is essentially financing the revenue transaction because for some transactions, the receipt of consideration does not match the timing of the transfer of goods or services to the customer (e.g., the consideration is prepaid or is paid after the services are provided). When the customer pays in arrears, the entity is effectively providing financing to the customer. Conversely, when the customer pays in advance, the entity has effectively received financing from the customer.

Relevant ASC 606 Excerpt: (ASC 606-10-32-20 An entity shall present the effects of financing (interest income or interest expense) separately from revenue from contracts with customers in the statement of comprehensive income (statement of activities). Interest income or interest expense is recognized only to the extent that a contract asset (or receivable) or a contract liability is recognized in accounting for a contract with a customer. In accounting for the effects of the time value of money, an entity also shall consider the subsequent measurement guidance in Subtopic 835-30, specifically the guidance in paragraphs 835-30-45-1A through 45-3 on presentation of the discount and premium in the financial statements and the guidance in paragraphs 835-30-55-2 through 55-3 on the application of the interest method.”)

Improving Financial Transparency with Adoption of ASC 606-blog-graphic-10-04-2018

Summary:

The new revenue recognition standard will bring much more visibility to a company’s revenue recognition processes and new data points that will help readers of the company’s financial statements more clarity to make more informed financial analyses.

Click here to learn more about how Bramasol can help with RevRec compliance and optimization.

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Topics: revrec hot-tips, ASC606

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