ZenTreasury Ltd

In this section, we will explain how to implement the lease management system step by step. After the customer has signed the agreement with ZenTreasury these are the next steps to follow:

1. First, contact a ZenTreasury admin to create a new environment for a new customer.

2. Inform ZenTreasury of what email domains should have the access into the system (@company.com).

3. Download the attached excel template. Please note that you’ll have to  gather all agreements into this master excel.

• Column H+I is the total lease cost.
• Date format needs to be yyyy-mm-dd.
• If you are doing IFRS adjustments with lease postings and you are accruing your local accounting lease cost on a monthly basis; and, at the same time, want to have the IFRS adjustment to the same periods, you should always create the leases into the system as those would be paid 12 times a year.
• If you enter the interest rate into the file, put the value without %-sign. So, 2,5% interest rate should be 2,5 (not 0,0025 or 2,5%).
• All columns are explained in the excel with comments.

4. Based on the data, ask ZenTreasury to activate the needed currencies into the system. After the currencies have been activated ,create one bank account for each currency ‘Settings -> Bank accounts’. All entities can use the same account if you are only doing IFRS adjustments, so no need to create for each entity. Also, name the account (Account name) with the same currency as the currency is. For example, if the currency is EUR then put "Account name" EUR.

• There is only a short list of countries provided. That information does not have an impact on the system, meaning that you can just choose some country from the list if you are missing a country.

5. Based on the data, create all Companies (Entities and Counterparties). 

• There will already be one company created in the system. You can change the name of this company to be the "parent" company of your customer.
• First, take all entities to a separate sheet, and if there are any duplicates, just remove them from the excel. Then, take in the ‘Company register’ and the ‘Company import excel’ and import those in. The process has been explained in more detail in this document: Setting Up Company/Companies
• Remember to give yourself access to all these entities after you have created them.
• Keep in mind that the base currency of the entity is very important in terms of what is the reporting currency of that entity. Based on this information the reports and accounting will convert the numbers into the base currency (if rates are provided in the Foreign Exchange Rate table). 
• If, for example, you have a larger group with subsidiaries in different countries but you wish to do lease accounting in consolidated currency, select the base currency for each entity to be the consolidated currency. (Remember that by choosing this approach you will expose your BS with FX exposure because liabilities are re-evaluated based on new FX rate; RoU Asset is not.) So, the best approach is to always make the IFRS adjustments in the subsidiary´s base currency.
• You can define one default interest rate for the lease calculation per each entity, and that is the entity doing IFRS accounting for its leases - under IFRS 16 sheet in company. This rate will come to agreements by default. You can, of course, change it to something else if needed.
• Do the same thing for counterparties.
• There is only a short list of countries provided. That information does not have an impact in the system, so you can just choose a country from the list if you are missing a country.

6. Following the steps mentioned above, create portfolios based on the data. Remove duplicates and use portfolio import excel to do this.

7. Create all cost centers based on the data, if any. Remove duplicates and use the cost center import excel to do this. 

8. Create all Lease types based on the data. Remove duplicates and create them manually.

• It is very important to agree with the customer that they want to calculate the discount value and interest cost with the compound -, simple interest- or simple actual days - method. If they have started with excel already, they are advised to use simple interest or simple actual days interest. All lease types should have the same method. If your starting approach for lease accounting is that you start to discount from your reporting start date (not the actual agreement start date) - and you have leases where you have payments with less than 12 payments a year - it is recommended to use "Simple actual days" in order to have the NPV and interest correct for the first broken period.
• Also, you need to define the lease type by lease type paid:  the lease in arrears or in advance. If in advance, remember to also add the first payment into "Lease payments made on or before commencement date" in the uploaded excel.

9. Based on the data and start dates, it is recommended to have at least one currency rate for each currency pair needed in the Foreign exchange rate table. The process has been explained in further detail in"Foreign Exchange Rates".

• You need the rates in one agreement, keeping in mind that the entity and the agreement currencies are different.
• You need them as well if you have a group and you want to see numbers in the reporting and the consolidated currency. 
• Check the data to see what is the first start date. Then, based on that start date import all needed currency pair fixings.
• Of course if you want to have all data correctly converted in the future you need to build a process for updating the currency rates before reporting.

10. After implementing the steps mentioned above you can start to import the actual lease agreements.

• First, download from the ‘Lease register->Import->Download sample excel’.
• Then, you can start to copy paste from the master excel the agreements into the import excel. We recommend you to begin with only one lease. Test that it looks fine after the import and then you continue importing more into one file.
• One column is missing in the master excel which should be added to the actual import excel. It is the last AB column. That is the bank account. If you named the bank accounts with the same code as the currency, you can just copy the currency codes from column J into column AB.
• You can bring 100 lease agreements at once. It is always good to check a couple of lease after the import.
• Please notice that if you have imported an agreement that has already ended, you will find it from the ‘Lease Archive’.
• If you want to have a yearly or some other price increase mechanism in the lease flow (clear all and create payment schedule again with price increase) or you want to alter certain individual payments (go into that payment from the pen next to that payment), you need to do this after you have imported the agreements initially.

11. After you have imported all agreements, you can start to run reports and see the summary figures. Also, you can start to create the accounting settings if you want to import accounting data directly into your ERP.

12. If there have been already changes during the lease term you can then start to import those also using the Lease Change import functionality explained in Lease Change document more thoroughly.

13. Once you are happy with the leases you can also give access to the customer into the system. This is done in ‘User->Create new user’.

• After you have verified the new user and have assigned the needed roles, remember to give the person access to the entities that he/she should have the right to.
• Roles are managed under Roles. Normally, you should have a couple of admin users with principal roles who can control others. For example, all other users can have a Front office role. From ‘Roles’ you can define what a Front office user means to the customer.
• The system will not send any messages to new users. You need to inform them of what is the URL for the environment, and what is the username. Following this step, from the main login page they can click "Forgot password" and create their own password on their first login attempt.