Is SAP ready for GASB 87?

[rick_megaro]

Effective January 1, 2020, GASB 87 will require new accounting and financial report requirements for Leases for Governmental entities. I am trying to determine how we are to implement GASB 87 in SAP. I have a few questions for SCN and SAP:

1. Are there any government clients out there working to implement GASB 87 in SAP? If so, what have you done if anything for this implementation?

2. I understand leases are contained in SAP Real Estate functionality. We do not use this functionality so if anyone can provide some guidance, I would appreciate it.

3. Questions for SAP: what are you or will you be doing to comply with GAB 87 rules for your customers? Will they be in a future support package and if so, which one?

Thanks,

Rick Megaro

County of Delaware

megaror@co.delaware.pa.us

610-891-4444

[phillipmarchbanks]

In response to questions 1 and 2, the City of Portland, Oregon has started implementing RE-FX-LA (contract lease management). I recommend you read SAP note 2255555 and some of the other RE-FX-LA notes. You might also want to read chapters 1 (Lease accounting basics) and 5 (Configuring SAP Flexible Real Estate Management for Lease Valuations) of the book, “Lease Accounting with SAP: IFRS 16 and ASC 842”. I am not recommending or even discussing the other chapters that refer to a 3^rd party solution for equipment lease ins.

You will notice that none of the RE-FX-LA notes or the book refer to GASB87. Regardless, we've been told that RE-FX-LA is SAP’s solution for valuating leases and creating right to use assets in SAP, as required by GASB87.

It would be super helpful, given the time constraints to implement the solution, if SAP would provide more guidance to its customers on how, specifically, to configure RE-FX-LA for GASB87.

Good luck.

Phil Marchbanks

City of Portland, Oregon