LEASE ACCOUNTING SOFTWARE
VENDOR COMPARISON CHECKLIST
LEASE ACCOUNTING SOFTWARE
VENDOR COMPARISON CHECKLIST
DEVELOPED BY:
SECTION ONE:
LEASE ACCOUNTING
FEATURES
VENDOR COMPARISON CHECKLIST
1)LEASE CLASSIFICATION, POLICY ELECTIONS AND JUDGMENTS
Vendor 1 / Vendor 2 / Vendor 3Tests – Perform classification tests for new and current standards at schedule, asset category and asset-level
Thresholds – Allow users to configure policy thresholds for classification testing. Examples include:
•Bargain Purchase Option
•Renewal periods likely to be exercised
•Percentage of Present Value of payments that represents an asset’s Fair Market Value
Judgments – Allow users to make and document judgments
Overrides – Enable overrides of lease classification tests with ability to comment and explain
2)LEASE ACCOUNTING ENGINE AND SUBLEDGER
Vendor 1 / Vendor 2 / Vendor 3Global Lease Accounting Engine
Monthly Entries – Generate debits and credits at asset-level with aggregations to schedule or portfolio
Payments and Amortization – Produce schedules at the asset, schedule and portfolio level
Adjustments – Support Right-Of-Use value adjustments for Initial Direct Costs, lease incentives and impairments
Re-Negotiation and Modification – Analyze changes in assets, terms and payments; determine asset and liability re-valuation with related gains/losses
Close Dates – Enable varying accounting close schedules
Lease Accounting Sub-Ledger
Journal Details – Support entries such as commencement, expense recognition, principal reduction, short-term and long-term re-classes
Mid-Term Events – Support journal entries for partial mid-term events
Pro-Rating – Support journal entries for mid-month lease commencement dates with pro-rations to the appropriate accounting period
3)FINANCIAL DISCLOSURES AND REPORTING
Vendor 1 / Vendor 2 / Vendor 3Financial Disclosures
Multiple General Ledgers – Support intelligent publishing of debits and credits to multiple, different general ledgers for different business units or geographies
FASB ASC 842 – Support new US GAAP standards
FASB ASC 840 – Support current US GAAP standards
IFRS 16 – Support new IFRS Lease Accounting
IAS 17 – Support current IFRS Lease Accounting
Comparative Reporting – Create multiple sets of books from same data set to comply with comparative reporting for income statements and balance sheets
Other Management Reports
Reconciliation and Roll Forward – All new leases, returns and buyouts between two accounting periods
Deferred Tax Reconciliation – Calculation, reconciliation and reporting of temporary timing differences between book and tax accounting
4)RESPONSIBILITY AND MANAGEMENT ACCOUNTING
Vendor 1 / Vendor 2 / Vendor 3Responsibility and Management Accounting
Allocations – Support responsibility center accounting with allocations to cost centers, entities, locations, departments, projects and business units
Split Allocations – Support accounting for a piece of equipment shared by multiple cost centers or projects
SECTION TWO:
DATA INTAKE
AND PUBLISHING
FEATURES
VENDOR COMPARISON CHECKLIST
1)DATA ABSTRACTION
Vendor 1 / Vendor 2 / Vendor 3Data Abstraction
File Types – Support data abstraction from JPEG, TIFF, PDF, DOC, etc.
Data Elements – Automatically capture key lease terms (start date, end date, and end-of-term options)
Dynamic Capture – Dynamically add new data elements, attributes and clauses in efficient manner without rework
Linking – Link schedule, line item, asset and component-level information submitted from different sources using a common key
Relationships – Hold related data and documents in a queue until all related transactions are completed
Quality Assurance
Validation – Ensure that bad data is not loaded into the system
Self-Assessment – Assess accuracy and completeness of abstracted data by assigning a confidence score or rating
Reprocessing – Enhance quality of data using automated reprocessing algorithm (second pass)
Source Documentation – Maintain a link of abstracted data elements to their location on a lease document to support auditing and inspection
Alternative Options for Data Upload
Web Interface – Upload one or many leases
Email – Upload one or many leases
API – Upload one or many leases*
File Upload – Upload one or many files in spreadsheet (XLS/XLSX) or comma-delimited format (CSV)
2)APIS AND INTEGRATION
Vendor 1 / Vendor 2 / Vendor 3Internal Applications
RealEstateAdministration – API or pre-built integration with systems such as Accruent, CoStar, IBM Tririga
Procurement – API or pre-built integration with Ariba, Oracle iProcurement, Coupa, etc.
ERP – API or pre-built integration with SAP, Oracle, PeopleSoft, Workday, Netsuite, etc.
IT Asset Management – API or pre-built integration with HP, BMC, CA, ServiceNow, etc.
Fleet Management – API or pre-built integration with Fleetmatics, Telogis, Sperion, etc.
External Systems
Lessor Systems – APIs or pre-built integration with lessor applications such as Sungard, Odessa and LeasePath, etc.
Real Estate Broker Systems – APIs or pre-built integration with applications from JLL, CBRE, Cushman and Wakefield, etc.
IT Outsourcing Systems – APIs or pre-built integration with applications from HP, CSC, IBM, etc.
3)FILE UPLOAD AND WEB INTERFACE
Data Intake and Publishing / Vendor 1 / Vendor 2 / Vendor 3File Upload
File Upload – Upload one or many leases in a structured file format such as comma-delimited (CSV) or spreadsheet (XLS/XLSX)
File Download – Enable users to download all of the data related to a lease (or set of leases); export data in a comma-delimited file format
Web Interface
Email – Enable users to send lease documentation to a designated email address; files kept in a queue for manual data entry into the system
Web Interface – Provide screens to efficiently enter new leases into the application
SECTION THREE:
DEPLOYMENT OPTIONS
AND INFORMATION SECURITY
FEATURES
VENDOR COMPARISON CHECKLIST
1)LICENSED/ON-PREMISE
Vendor 1 / Vendor 2 / Vendor 3On-Premises
Operating Systems – Support for Linux, Windows, etc.
Database – Support for Microsoft, Oracle, IBM DB2
Documentation– Comprehensive installation and support documentation
Training – Availability of online or in-person training for developers, users and systems administrators
Professional Services – Support for installation, upgrades, integration and customization
Support – Multi-tiered 24x7 phone support with troubleshooting, problem diagnosis and resolution
2)CLOUD DEPLOYMENT
Vendor 1 / Vendor 2 / Vendor 3Cloud
Backup – System, content and database files
Monitoring – 24x7 monitoring of application health and performance
Security – Policies and controls; technologies such as firewalls, intrusion detection and data encryption
Processes and Controls – Third-party audit support; SSAE 16 (SOC I or II) or ISAE 3402
Support – Multi-tiered 24x7 phone support with troubleshooting, problem diagnosis and resolution
Maintenance Windows – Frequency and duration
Managed Upgrades – Frequency and level of support required by customer
Service Level Agreements – Standard SLA, Recovery Time and Recovery Point Objectives
3)INFORMATION SECURITY
Vendor 1 / Vendor 2 / Vendor 3Application
Role-Based Access – Configure roles to ensure that users have access only to the appropriate functionality and data
Single Sign-On – Enable access to the application through a corporate login and password administered by another system; integration with Active Directory or Lightweight Directory Access Protocol (LDAP)
Cloud
Incident Management – If hosted, process for detecting, responding and communicating the outcome of suspected or known security incidents
Patch Management – If hosted, process for evaluating and deploying firmware, operating system, database and application patches and hot fixes
Data Encryption – If hosted, process for ensuring that sensitive information is encrypted while in motion or at rest in the database
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Developed by LeaseAccelerator