In the dynamic market of leasing management, a strategic solution that provides a holistic view and full control of your fleet of equipment and materials which you lease-out, is essential. FIT-Lease, the Leasing Management solution from FIT-Global, does just that.
It is however important to understand that, in addition to FIT-Lease, there are different leasing management solutions available within the SAP market, offering end-users some choice with regards to their Leasing Management System. SAI, SAP’s current in-house Accounting Integration solution, the upgraded version of LEA, is specifically designed to streamline leasing accounting processes. A third option in this market is SAP CLM.
With several solutions to consider, it is important to understand what each one offers, as well as their key differentiating features and capabilities. These are depicted in the table below.
As a whole, the FIT-Lease solution enables users to manage their fleet of equipment and materials in one place. Its end-to-end processes result in increased efficiency, and in turn, redefines optimization of leasing operations.
One of the key distinctive features that sets FIT-Lease apart is related to “background language”. In comparison to SAP SAI, FIT-Lease is based on SAP SD and provides far more flexibility than other existing solutions.
As highlighted above, there are clear differentiating features between the various leasing solutions currently within the market. We will now take a deeper look into the extensive capabilities of FIT-Lease, and the various benefits it will provide to any organization when it comes to the holistic management of leased fleets, equipment and materials.
So, what exactly does FIT-Lease offer? With this solution, you are able to:
1. Cover all End-to-End Leasing Processes
2. Effortlessly Manage Lease Modification Amendments & LPO
3. Manage Financial & Operating Leases with IFRS 15 & 16
4. Maintain Flexible Contract Management
5. Gain a 360-Degree View: Optimize Revenue through Asset Management
6. React Faster, Decide Better with FIT-Lease Quotation
7. Calculate Leasing Options Easily with Lease Calculator
8. Manage Fleets with Real-Time Insights
9. Integrate with OEM’s Through a Central Master Data Concept
10. Navigate Success with SAP’s FIORI Interface
Let’s dive in.
1. Cover all End-to-End Leasing Processes
FIT-Lease, the intuitive Leasing ERP solution fully embedded in SAP S/4HANA, covers all end-to-end processes for managing a leased fleet of equipment and materials.
Experience the ease of creating a lease quotation, contract, check-out, delivery, return, check-in, as well as cycle & final billing. The solution also covers the capabilities to recognize revenue under IFRS 15 (ASC842) and complies with IFRS 16 (ASC606) standards for lease accounting.
Furthermore, leased equipment, fleets and materials might require regular service and parts management, as well as sales and/or purchase management. These extensive capabilities on top of S/4HANA are covered by FIT Global’s SAP certified solutions FIT-Service , FIT-Parts and FIT-Prime. Companies can also manage fleet transfers, or benefit from FIT-Rent, FIT Global’s rental management solution in S/4HANA.
2. Effortlessly Manage Lease Modification/Amendments & LPO
FIT-Lease is a transformative force in leasing management, offering advanced special processes that redefines efficiency and customization.
Incorporating features like cycle billing controls and automatic LPO price definition, FIT-Lease ensures precision and control over initial billing cycles and seamless transitions between leasing phases. The system’s flexibility in selling price options adds a dynamic layer to pricing strategies.
Creating follow-up quotations or contracts is streamlined with pricing calculations available through incremental or total amount methods. FIT-Lease’s holistic approach ensures an automated yet customizable solution for specialized leasing needs, saving time and eliminating manual efforts.
FIT-Lease is not just a solution; it offers a strategic advantage in the dynamic landscape of leasing management.
3. Manage Financial & Operating Leases with IFRS 15 & 16
Experience financial transparency and easy asset tracking with FIT-Lease’s adherence to IFRS 15 (ASC 842) & 16 (ASC606) standards. FIT-Lease ensures a seamless adaptation to these regulations, turning complex concepts into simplified operational advantages.
Performance obligations are also met with precision, ensuring that promises to deliver goods or services under a contract are distinct and efficiently fulfilled. Furthermore, the standalone selling price, representing the cost at which an individual good or service could be independently sold, is scrupulously evaluated to ensure transparency and accuracy in financial dealings.
With IFRS 15 & 16 alignment, FIT-Lease addresses contract assets and liabilities, ensuring that recognized revenue is correctly reflected, whether it exceeds the invoiced amount (contract asset) or falls short (contract liability).
An alternative option is to connect FIT-Lease with SAP Leasing Accounting using the RAR engine. This allows to transfer the Lease-out Contract details to be sent from FIT-Lease to the RAR engine. Firstly, an allocation is made in accordance with IFRS 15 with regards to the different elements of the Lease Contract (such as hardware, services, maintenance and consumables).
In parallel, the creation of all the elements is done to make IFRS16 compliant postings for finance or operating leases, including both the one-time postings and the periodic postings during the lifetime of the contract.
4. Maintain Flexible Contract Management
Experience revenue growth with FIT-Lease’s flexible contract management. Calculate leasing options effortlessly, react to client demands and increase customer satisfaction. Billing processes are also streamlined to boost the overall success of any leasing business.
5. Gain a 360-Degree View: Optimize Revenue through Asset Management
FIT-Lease enhances revenue streams through flexible contract management, dynamic lease amortization scheduling, stand-alone lease calculation, as well as initial and cycle billing, including fees for late returns and over usage.
By providing a 360-degree view and holistic perspective on asset availability, FIT-Lease contributes to heightened utilization rates. This, coupled with elevated customer satisfaction and retention rates, propels the overall success of any leasing business to new heights.
6. React Faster, Decide Better with FIT-Lease Quotation
The FIT-Lease Quotation functionality elevates resource planning and saves time through automated delivery checkouts that centralize billing processes. This means leasing postings can be streamlined, revolutionizing operations by optimizing decision-making and enhancing efficiency, all while eliminating manual controls.
Beyond this, FIT-Lease employs a role-based approach for contract and customer-based billing, providing a tailored and transparent financial structure. Automated journal entries ensure precise and efficient accounting, while integration with the standard SAP RAR solution guarantees compliance with IFRS 15 postings.
7. Calculate Leasing Options Easily with Lease Calculator
Calculate leasing options easily with FIT-Lease’s lease calculator. Simulate prices, display the best options and automate posting jobs for increased visibility and easy tracking.
The use of the FIT-Lease calculator, results in increased flexibility when responding to client demands and an overall increase in customer satisfaction.
8. Manage Fleets with Real-Time Insights
FIT-Lease enables leasing companies to streamline their operations with real-time operational and financial insights. Discover a new standard in fleet management with FIT-Lease, a comprehensive solution designed to optimize operations and empower strategic decision-making.
FIT-Lease ensures seamless physical equipment transfers and dynamic adjustments between fleet types, supported by automated logistics and financial postings for accurate record-keeping. The system’s intuitive design incorporates remark pop-ups and offers flexibility in exploring multiple reclassification scenarios. Information on the right of usage can be obtained by recalculating it for each lease.
Flexibility is a key advantage, offering transfer options between companies, plants, and storage locations. FIT-Lease excels in minimizing errors through automated processes, enhancing overall operational efficiency. Precise reclassifications contribute to a more accurate representation of a fleet, ensuring alignment with overall organizational goals.
9. Integrate with OEMs Through a Central Master Data Concept
Equipment can be tracked throughout the entire value chain and its lifecycle, gaining real-time insights into asset transparency, including profit and loss, utilization and availability. The pivotal element for success in fleet management lies in the integration with OEMs via a central master data concept, facilitating a comprehensive end-to-end process.
Experience a complete equipment history view, enriched by IoT connectivity for geolocation information and detailed measurements, covering factors like fuel consumption, working hours and distance traveled.
Furthermore, FIT-Lease contributes to asset sustainability tracking, aligning operations with evolving environmental considerations.
10. Navigate Success with SAP’s FIORI Interface
Experience user-friendly efficiency with FIT-Lease’s SAP FIORI interface. The web-based user interface ensures easy login and swift navigation through a role-based approach. The self-driven planning board facilitates faster creation of quotations or contracts, while real-time availability insights empower dynamic decision-making. Relevant access control to each role ensures a streamlined and secure process.
Moreover, FIT-Lease’s SAP FIORI interface offers accessible dashboards with various filters, enhancing visibility and facilitating efficient operations. Navigate through specific processes seamlessly, from cycle billing controls to automated Leasing Purchase Option (LPO) price definitions, all ensuring a timesaving, user-friendly and precise approach.
Final Thoughts
In conclusion, FIT-Lease emerges as the definitive solution for the dynamic landscape of leasing management within SAP S/4HANA. This comprehensive guide has unveiled FIT-Lease’s prowess in covering end-to-end processes, seamlessly integrating with standard SAP workflows, and providing a 360-degree view for any leased fleet.
From flexible contract management to real-time insights and user-friendly efficiency through the SAP FIORI interface, FIT-Lease stands out as a pioneering solution.
