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Planning to implement your ASC842/IFRS 16 lease accounting solution in 2019? PeopleSoft can help!

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Since 2019 is now upon us, some organizations have already implemented PeopleSoft Lease Administration. Some are in the final stages for go-live preparation. Some organizations have not yet started to implement a solution and are targeting 2019 to do so. The good news is that PeopleSoft has you covered regardless of your project go-live target date. The delivered cutover process lets you target your go-live date. It also provides you with the accounting entries and audit trail you need for a smooth transition.

As I have mentioned in my earlier blogs, the biggest effort for implementing the new accounting rules is identifying your lease data. For many organizations, managing leases is decentralized and is mainly focused on managing the monthly payments. Going forward that all needs to change. Leases all need to be fully documented at a central point. The underlying ROU Assets and Liabilities put on the balance sheet. This is where the challenge lies. Having the time to build your catalog of leases.

When do you plan to go live?

If your target is sometime in 2019, as I stated above, PeopleSoft can help. The integration to Asset Management and the General Ledger is all there. For obvious reasons, going live in January 2019 is easiest and the cutover and transition for the accounting entries requires the least amount of effort. Moving to the new rules requires putting assets and liabilities on the balance sheet. Regardless of when you plan to go-live to go-live, some journal entries will be required to properly reconcile the beginning balances with the new system. But please note that managing the cutover process does become a bit more complex if you target later go-live dates as each passing month just adds an additional layer that needs to be reconciled.

Implementation

Lastly, the one thing that I consider the easiest part of a PeopleSoft Lease Administration project is implementing the module. If your organization will be moving onto Lease Administration, my experience says build your new environment now. Have Lease Administration ready and waiting. Get the easiest part of the project out of the way the soonest. When your lease data is ready, your new environment will ready to go and you can avoid any further delays. I have also seen that including your accountants and users as part of the lease administration build out actually makes gathering your lease data easier. The users will have a clearer picture of the data requirements which in turn will lead to better lease data.

In closing, if you are planning to go live with PeopleSoft Lease Administration in 2019, PeopleSoft makes the process very manageable. It may not make the effort of gathering your lease data go away, but PeopleSoft will provide the accounting entries and audit trail so that you reconcile the process every step of the way.

Thank you for reading and be sure to read our other Lease Administration Blogs.

Steven Brenner, CPA
Senior Principal Consultant
MIPRO Consulting

It’s still not too late to implement PeopleSoft Lease Administration for January 1, 2019 and be ready for the new ASC 842 & IFRS 16 accounting rules!

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I would like to remind everyone that the deadline for compliance with the new ASC 842 & IFRS 16 rules is fast approaching. My headline is a bold statement, but it can hold true if you can answer yes to the following questions:

  1. Have you already identified all your leases, including the payment schedules?
  2. Do you already have your new lease accounting policies in place?
    • How will your leases be valued: Gross, Net, Triple Net and Practical Expedient?
    • Have you quantified the straight-line accounting impacts?
  3. Do you know which accounts on your balance sheet and P&L you will be using?
    • For some organizations, moving to the new standards may require setting up new accounts.

If you have answered yes to the above questions or if you are substantially on your way to completing those tasks, then you are a good candidate to begin implementing PeopleSoft Lease Administration and be live on 1/1/2019. From a business user’s perspective, those 3 questions can be 75% – 80% of the upfront effort required. Once you have that lease information in place, your project implementation team will have what they need to setup Lease Administration and have the system ready for testing with plenty of time for a 1-1-2019 go-live.

Implementation

Certainly, the timing for a 1-1-2019 go-live will be tight. Keep implementation simple and strictly focused on meeting the new accounting standards. Lease Administration has many other features for enhanced notifications, etc. By keeping your focus on the accounting entries, you will be just fine. As delivered Lease Administration provides effective internal controls. Any other features, bells, & whistles you wish to bring up should be slotted for a phase II (post go-live). This will greatly minimize any potential critical path issues.

Although my three questions above are clearly high level, they do serve as an excellent guideline. If you have already tackled these questions, then a big piece of your preparation effort has already been completed. However, if your organization has not substantially answered these questions, then beginning a new implementation for a 1-1-2019 go-live would clearly have its challenges.

In conclusion, it is still possible to begin a PeopleSoft Lease Administration project and be live on 1-1-2019. For organizations that are not ready at all, I will cover this in my next Blog “You can still go-live with PeopleSoft Lease Administration after 1-1-2019 and meet the new accounting standards”.

Thank you for reading and be sure to read our other Lease Administration Blogs.

Steven Brenner, CPA
Senior Principal Consultant
MIPRO Consulting

How to Get Rid of Stress While on a Business Trip

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Feel stressed out while traveling? You aren’t alone. Learning to get rid of stress is essential when traveling. According to a study by CWT Travel Solutions Group (CWT), the top three triggers for stress when traveling can be grouped into three main areas: 1. Lost Time. It’s difficult, or downright impossible, to get work done while traveling, especially […]

Administering Simplified Analytics Video

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Two weeks ago, we published a blog on administering simplified analytics. To watch a video demonstrating how to create a simplified analytic and make it available to the end user on a Fluid tile, click here or on the photo below: Additionally, if you would like more information on simplified analytics, please email me at Larry.zagata@miproconsulting.com. To read […]

Administering Simplified Analytics

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Our previous blogs have focused on the creation of a Simplified Analytic. Now, we would like to show you how administering Simplified Analytics works and how to make them available to end users. Simplified Analytics are a great way to open up reporting to the masses. You can control the query behind the scenes. You […]

PeopleTools 8.57

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On September 21, 2018, PeopleSoft released PeopleTools 8.57. It marked the first time a release was generally available in the Cloud before on-premise environments. Using the Cloud Manager, customers may subscribe to the PeopleTools 8.57 channel to automatically download the release in addition to available PeopleTools patches. Based on the 8.57 release notes, the following […]

My Team Manager Self Service Instructional Video

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Last week, we published a blog on My Team Manager Self Service. To watch a short 6-minute step-by-step instructional My Team video further outlining this Tile, click on the link https://youtu.be/IsGfVKCbdnU or photo below: Additionally, if you would like more information on Fluid, related actions, or simplified analytics, please email me at Larry.zagata@miproconsulting.com. To read more about […]

My Team Manager Self Service

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Previously, we’ve published written and video blogs regarding Fluid and Classic features such as simplified analytics, related content, and related actions. To improve efficiency and the overall user experience, the My Team Manager Self Service tile (see photo below) now houses all these features in one location. As always, the user can configure the delivered […]

Page and Field Configurator Instructional Video

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Last week, we published a blog on the PeopleSoft Page and Field Configurator. To watch a short 8-minute step-by-step instructional video, click on the link https://youtu.be/1yFexvEI9lg or photo below: Additionally, if you would like more information on Page and Field Configurator, please email me at Larry.zagata@miproconsulting.com. To read more about MIPRO Consulting, click here.

Page and Field Configurator

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The Page and Field Configurator has been out for a little while now, and although it provides the user with the capabilities to configure pages in PeopleSoft, it does not seem to get the attention that it deserves. In the past, all changes came from the application designer and customization had to be maintained.  With […]

eProcurement Fluid Enhancements

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In March 2018, PeopleSoft FSCM Update Image 27 introduced the Fluid Requisition Enhancement. As a result, the eProcurement Fluid Enhancements now include multiple features. You can now enter default values for new requisitions on the Requisition Defaults page. And you can make changes on the Line Details page. On the Checkout page, you can select […]