As a major Cigarette and Tobacco Manufacturing Company, it has large diverse and disperse workforce, which combined with the fact of having products sold worldwide meant that the amount of lease contracts was incredibly large, 16.000+ contracts. As such, this Company represents one of the largest and most relevant implementations of IFRS 16 Technology Solutions in the world.
Qiado has supported this client from the very beginning of the project, before the Go Live in the application system. We started with the Blueprint phase to understand the client´s specific requirements, projected all configuration requirements and SAP prerequisites and could, finally, provide the customer with a operating and functional application tool. Since the implementation of IFRS16 norm, in 01.01.2019, Qiado has had an enormous challenge in integrating all 4 different ERP systems, guaranteeing IFRS16 and ASC842 standards compliance, dealing with different multicultural teams across the world and specially being responsible for a very significant number of lease contracts.
With this, Qiado has provided facility to the customer in terms of management of their leased asset contracts in integration with SAP (asset creation, modification, retirement, month end procedures, asset management module, depreciation in USGAAP standard, financial reports and schedules, etc). Ever since, we have been supporting them for more than a year with AMS (Application Maintenance Service) in post go-live issues. This saves them precious time and promotes efficiency in their daily routine.
After the Go Live, the needs of the client changed and so Qiado has started supporting with other procedures and issues. For example, we have supported the client with 3 application upgrades and are already planning the next one. During AMS, the main activities from Qiado are related to the IFRS16 and USGAPP transition, SLAN configuration, new company code creation, ERP integration, User Accepting Testing, reporting developing and enhancement. Also, every month end has to be precise and on time, so given the huge number of company codes, contracts and business users, Qiado’s consultants make a big effort to support the client with compliance, transparency and reconciliation deliveries.
Qiado performed the Blueprint and supported client with Go-Live processes . The biggest challenge of this project was its contracts in connected system with and without Asset Module. It also had a disconnected system do be configured. During the implementation, the main activities that Qiado supported were Contract Data Gathering, SAP Connection and Customization, Master Data Configuration, Workshops, Training and User Acceptance Tests (UAT), accounting postings, reconciliation IFRS Postings, financial reporting.
Qiado has for long supported this customer, partially implementation of the project until today, when Qiado is responsible for the Application Maintenance Service. This project included 1 connected ERP system to be integrated and 1 disconnected and IFRS16 and IAS17 standards compliance. The main activities that Qiado supported were the IFRS16 and IAS17 transition, SLAN configuration, ERP integration and handling upgrade projects. Other activities included Month End activities, workaround and correction for bugs.
This project had several challenges such as CPI Global with 6 Index scenarios (mixture between maximum value, minimum value and a factor), 1 ERP system to be integrated, IFRS16 standard compliance. During the implementation the main activities that Qiado supported were the IFRS16 transition, Contract Data Gathering, SLAN configuration, Workshops , Training and User Acceptance Tests, accounting postings, reconciliation IFRS Postings, financial reportings.
As a major African Financial Institution, the Company presented a low volume of lease contracts, that have though very material amounts. Therefore given their praise on financial transparency the project focus on ensuring high compliance standards with clear, integrated and legitimate financial statements.
Qiado has supported this client since the very beginning of the project. It started with the support in Blueprint phase, where it was needed to understand the requirements of the client. It was decided that the client would start with a Hybrid solution (both disconnected and connected functionalities for the same system) and then they would involve S/4HANA. Qiado has then gathered all contract information, managed SLAN configuration and supported the client with Go-Live processes as Nakisa Partner. Even though the Go Live happened after the implementation if IFRS16 norm, in 01.01.2019, Qiado’s consultants have adjusted each inception ROU amount because of different payment frequencies so that they would reflect correctly inception amounts in the capitalization date.
After all the steps and the Go Live, this client had a functional application where they could manage all their contracts correctly and this allowed them to supervise and monitor the leased assets contract progress of all countries they were responsible for. Most of all, they could be compliment and transparent when revealing their financial statements to the public.
At the end of these processes, Qiado consultants also had another big challenge, which was the start of configuration and testing for connecting to S/4HANA. Even though the client decided not to move forward with it, the outcome was still positive and extensions and outcomes can be managed well in the tool.