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Home Case Study Automated IFRS 16 Lease & Sub-Lease Management for a Global IT Services Leader

Case Studies

From 8 Lakh+ Unmanaged Assets to Seamless SAP Integration

Automated IFRS 16 Sub-Lease Accounting

A leading global IT services firm was managing over 8 Lakh leased IT assets from a single lessor while sub-leasing them onward to enterprise clients via a Device-as-a-Service (DaaS) model. The lack of individual asset tracking and the burden of manually posting 11 complex journal entries every month created massive accounting bottlenecks, audit exposures, and period-end close delays inside SAP.

Success Stories

Real Results from Real Enterprises

Leased Assets Managed8 Lakh+

Over eight hundred thousand individual IT hardware devices smoothly transition from legacy unmanaged spreadsheet tracking into a unified database inside SAP.

Automatically Posted11 Feeds

Chained monthly lease-in journal adjustments and sub-lease revenue workflows are fully automated, completely eliminating manual human calculation errors.

IFRS 16 Audit-Ready100%

Every automated journal entry for depreciation, liability, and ROU assets is fully traceable directly down to a singular, unique device ID.

Challenge

The Compounding Financial Risks

The client accumulated a massive portfolio of leased assets, sub-leasing them to enterprise customers under a Device-as-a-Service model. This complex ecosystem triggered deep operational bottlenecks for finance teams. Every month, accountants had to manually process multiple chained journal entries for depreciation, interest accruals, and revenue recognition. Furthermore, tracking assets solely at the contract level blocked individual device disposals, while total reliance on lessor CMDB files made accurate invoice reconciliation impossible.

Solution

The Integrated Platform Architecture

To resolve these material risks, ezAtlas deployed the NEXUS-ITLM module as a dynamic automation layer integrated natively within the core SAP ecosystem. The system establishes individual asset-level master records independent of lessor or sub-lessee CMDB feeds, mapping a unique ID to every single piece of leased hardware. All complex monthly IFRS 16 entries, depreciation, and sub-lease accounting steps are auto-generated cleanly into SAP FI/AA. By securing this uncorrupted database, the client easily handles returns and resolves external billing discrepancies with clear data.

Outcomes

Inside the Software Workflows

Manual errors are removed via automated end-to-end journal logging. Every entry for asset depreciation, right-of-use asset value, and interest expense is permanently traceable to a specific device ID, building a watertight audit trail across the lifecycle.
Total IFRS 16 Compliance Auditing
By building a separate, internal asset registry, the client completely broke its dependency on external lessor or customer CMDB feeds. Internal accounting teams now utilize precise, uncorrupted system evidence to challenge and resolve billing disputes
Complete Financial Data Independence
Legacy contract tracking is replaced with single-device assetization in SAP. Operations teams can now seamlessly execute isolated device buy-outs, hardware returns, or scrap disposals on demand
Granular Per-Asset Control Features
On the sub-lease side, the platform automatically pairs the exact cost of hardware against incoming DaaS revenues for every single device. This cross-matching gives management real-time structural visibility
Accurate Sub-Lease Margin Reporting