SAP Solution Brief
EQUIPMENT LEASING WITH
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.
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.
Flexibility – Enables a high level of customization through
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
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
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
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