Implementing the new GASB 87 Standard with SAP Contract Lease Management

Posted by:
invenioLSI

Publish Date:
8 Jun, 2022

In our recent webinar "Implementing the new GASB 87 Standard with SAP Contract Lease Management at the State of Arkansas", invenioLSI’s Shyam Jajodia, (EVP and Solution Architect) sat down with Jessica Primm, (Technical Accounting Manager) from the State of Arkansas to discuss how SAP Contract Lease Management can be utilized for GASB 87 compliance. Over the last year, invenioLSI has worked in stride with the State of Arkansas to meet their GASB 87 compliance needs. In this webinar, we broke down the requirements of GASB 87, learned about the capabilities and benefits of SAP CLM, and heard firsthand from the State of Arkansas about their project goals, timeline, and lessons learned. We also took a full tour of the SAP CLM module in a demonstration led by Shyam Jajodia.

What is GASB 87?

The new standard, GASB 87 (Governmental Accounting Standards Board’s Statement No. 87), became effective for fiscal years beginning after June 15, 2021. Under the updated regulations, government entities are now required to capitalize on certain leases and recognize them as an intangible right to use assets and as long-term liabilities. To meet the requirements of these new regulations, government agencies had to restructure their lease management processes and reorganize their data. 

What is SAP Contract Lease Management? 

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SAP Contract and Lease Management (CLM) is a component of SAP’s Real Estate Management Module (SAP Re-FX) as well as a component of SAP Finance, which optimizes compliance with the new standards by providing real-time valuation of capital leases in accordance with the standards. It has the power to simplify an organization’s solution landscape by automating many lease accounting tasks, therefore eliminating the need for interfaces and reducing the number of applications needed to perform lease accounting.

Benefits of SAP Contract Lease Management for GASB 87 compliance:Untitled design (36)-2

Finding clarity with SAP CLM at the State of Arkansas:

In addition to simply complying with GASB 87, the State of Arkansas sought to automate the accounting steps required for Long-term Leases and for Right of Use Assets. They would also need the ability to terminate and edit Long-term Leases and Right of Use Assets and develop reporting that would provide the required disclosure information. With this in mind, the invenoLSI team set in place a rigorous implementation schedule over the following 8 months.

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At invenioLSI we aim to meet our client’s needs while also being cognizant of the exciting challenges. As the #1 independent SAP solutions provider serving the public sector and a leader in public sector implementations, we are well versed in working in with existing legacy systems at project sites. At the State of Arkansas, one of the challenges was working with their existing SAP ERP system (established in 2001) which encompassed Finance, Human Capital Management, and Material Management. Our implementation would need to work in conjunction with the existing systems while adding the necessary automation and modernization. As said by Jessica Primm “InvenioLSI was able to integrate the CLM implementation with these existing SAP modules to form a more modern solution". Despite the many challenges the project faced the invenioLSI team was still able to deliver on time and on budget.

Learn more by watching the webinar recording! 

 

 

 

Conclusion

This webinar gives you a snapshot into the implementation and road map to compliance with GASB 87.  This session included demonstrations of the SAP Contract Lease Management system. Whether you have a new SAP landscape or a legacy system, invenioLSI can meet your project requirements by tailoring our unique offerings to your specific needs. 

Please feel free to reach out to our team with any questions!

Contact Us!

 

 

Blog Author

invenioLSI

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