EQUIPMENT LEASING WITH SAP LEASING

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					                                    SAP Solution Brief




                                    EQUIPMENT LEASING WITH
                                    SAP LEASING

                                    More Effective Management of Contracts
                                    from Start to Finish

SAP Leasing offers an integrated,   The leasing industry is poised for high growth. The steady rise
                                    in interest rates from their all-time lows is driving an increase
end-to-end solution for             in organic origination volumes. Moreover, global expansion,
equipment leasing management.       especially into emerging markets such as China, is fueling
 SAP Leasing streamlines your       demand for leased equipment.
business processes in all phases
                                    To capitalize on these new market dynamics, leasing
of the leasing life cycle and it    companies are optimizing their operations to meet customer
delivers dependable business        demands and set the stage for the ability to move quickly into
intelligence to guide your          new global markets as opportunities arise. Regulatory
decisions. The solution can         compliance is foremost on everyone’s mind, and lessors are
                                    becoming more proactive in assessing the impact of changing
help you identify financing         accounting standards on their business. They are becoming
opportunities for leases or         enterprise-ready.
loans, make profitable midlease
changes and handle end-of-lease     Enterprise-ready leasing companies can ramp up quickly to
                                    meet today’s business challenges and turn a profit on them
options and remarketing.            because their technology platform supports future growth.
                                    That’s where SAP Leasing comes in.

                                    SAP Leasing – an integrated, end-to-end solution for
                                    equipment leasing management - streamlines your business
                                    processes in all phases of the leasing life cycle and delivers
                                    dependable business intelligence to guide decision-making.
                                    The solution addresses the core elements of your business
                                    process. It helps you identify financing opportunities for leases
                                    or loans, make profitable mid-lease changes and handle end-
                                    of-lease options and remarketing.
Leasing End-to-End                                               Operational Efficiency and Customer
SAP Leasing is a complete solution that supports core leasing    Satisfaction
processes, price management, quotation management, asset         Customers and vendors alike expect fast, accurate, cost-
management, marketing and remarketing as well as funding.        effective service, and their satisfaction hinges on the leasing
The analytical dashboard provides a clear, real-time picture     company’s ability to meet those demands. You can score a win
of your business, enabling you to make intelligent business      by improving data integrity through the elimination of error-
decisions. The interaction center and self-service portals are   prone manual processes and duplicate keystrokes.
key capabilities that help you improve customer service
while keeping support costs down. You can even collaborate       SAP Leasing is uniquely positioned to streamline your core
with your business partners utilizing this same portal           leasing processes and integrate activities throughout all stages
technology, further lowering costs.                              of the leasing life cycle. This will yield greater efficiency, lower
                                                                 overall costs and improve customer service. And by leveraging
SAP Leasing integrates the functionality of mySAP Business       customer data, you can increase revenue and maximize return
Suite solutions – including CRM, financials and business         by up-selling to customers and adjusting contracts for
intelligence – to empower all processes of the leasing           individual customers.
business.
                                                                 You can run the whole front-to-back business process or a
Some of the key features and functions in SAP Leasing            subset of that process from a single, common platform. That
include:                                                         will give you insight into customer needs, market
  Multi-book accounting – Allows automatic update                opportunities and business metrics through integrated business
  according US-GAAP, IAS, and all other global standards.        intelligence, analytics and reporting.
  Parallel valuation according to different books is enabled
  through a flexible classification engine.                      Automated workflows and straight through processing
  Asset management – Requires no manual interaction to           eliminate the need for time consuming manual input and
  update asset accounting. The asset centric solution            reduce the potential for error. You can increase revenues by
  provides key portfolio analytics.                              processing applications faster. At the same time, you can
  Customer support – Features seamless integration with          reduce maintenance costs because you do not have to maintain
  mySAP Customer Relationship Management (mySAP                  multiple interfaces between systems, which gets more
  CRM), which provides for an integrated access to the core      expensive with age.
  elements of mySAP CRM.
  Internet financing – Extends your market place and             Customer satisfaction improves because it takes you less time
  provides complete integration to the downstream                to process transactions and respond to inquiries. Armed with
  financing processes.                                           cleaner, more consistent data, you can make better decisions in
  Open architecture – The Service-Oriented Architecture          a given business environment and add value by offering
  provides easy integration with external services such as       professional advice to customers.
  credit-check agencies.
  Flexibility – Enables a high level of customization through
  rules-based engines.
But that’s not all. You can offer:                                Manages marketing campaigns including budgeting,
  Real-time financing quotations using the same                   planning, list selection, management, campaign tracking and
  information as the resulting contract                           evaluation
  Contract management through leasing life-cycle changes
  Flexible payment schedules and individualized payments        Consistent Accounting
  Internet channels that enable customers to quickly            Many accountants today are responsible for portfolio analysis
  configure equipment, get a quote, and place an order          as well as their traditional routine financial activities. That is a
                                                                significant challenge, especially for global firms. Considering
Contract Life-Cycle Management                                  the increased demands of their job, they rely on technology to
Consider this scenario: A customer has a lease in place that    simplify their processes and provide accurate, up-to-date
includes multiple schedules and assets. They telephoned you     information on the portfolio.
today to add new equipment, upgrade some of the existing
portfolio and buy out or return other components. With SAP
Leasing, you can handle all of these processes without a        SAP Leasing supports the entire accounting life cycle from lease
hitch.                                                          classification, asset accounting and receivables to revenue
                                                                recognition, general ledger and payables. Not only that, but it
SAP Leasing guides you through every step of the leasing        also allows you to analyze financial results in accordance with
contract life cycle – from agreement of the lease terms         U.S. Generally Accepted Accounting Principles (GAAP) and
through to the payment. During the interim, you can track       International Accounting Standards (IAS) Board rules. This is
assets and maintenance, monitor performance and store           becoming increasingly important in today’s global business
data.                                                           environment.

Your credit appraisals are accurate, your customers are         The solution provides you with the tools to understand how
thrilled with your leasing terms, the contracts are approved    differences between US-GAAP and IAS standards will affect
quickly, none of the purchase orders and invoices get stuck     your business. It gives you the analytical capability to assess the
in limbo, payments arrive at the right time and place and the   impact on your financial statements and your ability to borrow
equipment is just what the customer asked for. When             money from lenders and raise capital from shareholders. Firms
necessary, you can automatically restructure mid-lease, early   that operate globally can be proactive by producing financials
end-of-lease, and end-of-lease changes.                         based on GAAP and IAS standards. Most importantly, an
                                                                enterprise-ready platform helps you structure your business in
The contract life-cycle management functionality within         the most favorable way.
SAP Leasing includes:
  Supports core leasing processes such as subventions,          The solution supports:
  payment deferrals and structured payment terms as well as      Multi-national currencies
  special bid handling and individualized payment schedules      Automatic lease classification
  Offers sophisticated rules-based pricing engine that helps     Simultaneous parallel valuation (US-GAAP, IAS, and local
  you develop pricing, contract terms, billing, accounting       accounting rules)
  processes and mid-lease options                                Automatic fixed-asset updating
  Creates links at line-item level with asset tracking           Residual-value calculation
  capabilities                                                   Revenue recognition
  Analyzes marketing sales and service performance               Flexible rules-based engines
                                                                 www.sap.com/contactsap




Enabling Leasing Enterprise Services                             Powered by SAP NetWeaver                     TM



Architecture                                                     ESA is the blueprint of a SOA that combines the reliability and
In all likelihood, you have heard of how a Service-Oriented      functionality provided by SAP’s extensive enterprise
Architecture (SOA) can help you maximize efficiency by           applications with the flexibility of services based on open
reusing standardized components across your organization.        standards. Powered by SAP NetWeaver, the open integration
Many lessors have discovered that SOA helps them manage          and application platform, ESA supports an incremental
the complexity of their environment. Businesses can break        approach in preparing lessors for the next level of cost
up application functionality into reusable components called     efficiency and business flexibility.
web services, and then link them together in new ways that
support complex business processes.                              At the foundation of SAP Leasing is the SAP NetWeaver
                                                                 platform. SAP has designed SAP NetWeaver to support the
Now imagine if you could go beyond SOA interoperability,         needs of enterprise architectures, while enabling standards-
where the increase in business flexibility and cost-             based interoperability with other platforms that may be part of
effectiveness is the norm. This is made possible with an         the landscape. With SAP NetWeaver, banks can leverage
Enterprise Services Architecture (ESA). The fundamental          services that are part of enterprise suites like mySAP Business
premise of ESA is to imbed business logic, which mirrors         Suite, as well as create custom services as needed.
actual business activities or events, modeled as enterprise
services, onto an SOA framework. This ESA method of              To learn more about how SAP Leasing can help streamline
aggregating web services into business-level enterprise          your leasing business and maximize ROI, call your SAP
services provides more meaningful building blocks for the        representative today at 800-416-3732 or visit us on the Web at
task of automating entire enterprise-scale business scenarios.   www.sap.com/banking.
In other words, ESA extends SOA by enabling the business to
conduct and change processes by modeling the enterprise
services.

Lower Costs, Higher Flexibility
The efficiency that ESA brings to the table translates into
lower costs to the lessor and its customers. Lessors can now
re-deploy staff from boring maintenance roles into roles
designed to develop new strategies and business plans. As a
result, there is more potential to increase revenue by
retaining customers, acquiring new customers and offering
additional products and services. That is because the systems
are now more flexible, and the time to market is compressed,
which allows the lessor to be more responsive to market
dynamics.