SAP CLM and RE-FX
IFRS 16 compliance shouldn't be a manual problem.
SAP CLM and RE-FX, implemented correctly, turn one of the most complex accounting standards in modern finance into an automated, auditable, and continuously compliant process.
The standard
IFRS 16 changed everything about how leases appear on your balance sheet.
Since January 2019, IFRS 16 has required organisations to recognise long-term lease contracts directly on the balance sheet, as both a right-of-use asset and a lease liability. What was previously off-balance sheet is now visible, measurable, and subject to continuous accounting treatment.
For organisations managing significant lease portfolios, real estate, equipment, vehicles, licences, the operational implications are substantial. Lease data must be centralised. Calculations must be automated. Accounting entries must be generated, tracked, and updated each time contract conditions change.
Most organisations underestimate the ongoing complexity. IFRS 16 is not a one-time transition. It is a continuous compliance obligation that touches your contracts, your fixed assets, your general ledger, and your financial reporting, every month, for the life of every qualifying lease.
SAP CLM and RE-FX,
the integrated answer.
Lumveris implements SAP CLM (Contract and Lease Management) in integration with SAP RE-FX (Flexible Real Estate Management) and SAP FI-AA, the only combination that delivers fully automated, end-to-end IFRS 16 compliance inside your SAP landscape.
SAP RE-FX, The real estate foundation
RE-FX is the prerequisite module for any CLM implementation involving property assets. It manages your real estate portfolio in detail, properties, leased surfaces, rent conditions, indexation rules, contract timelines. It is the source of truth for your lease data.
SAP CLM, The IFRS 16 engine
CLM sits on top of RE-FX and handles everything the standard requires: right-of-use asset calculation, lease liability recognition, discount rate application, and automatic generation of the accounting entries that feed directly into SAP FI. When a contract changes in RE-FX, CLM recalculates automatically.
SAP FI-AA, Fixed asset integration
Right-of-use assets created by CLM are managed as fixed assets in FI-AA, with full depreciation scheduling, revaluation on contract modification, and asset retirement at lease end. The entire lifecycle is automated and auditable.
Architecture :
One data flow. No manual intervention.
Contract entry in RE-FX
Lease data is entered and managed in SAP RE-FX, rent amounts, durations, indexation schedules, surface details. This is the single source of truth for your lease portfolio.
Automatic transmission to CLM
CLM extracts the relevant contract parameters, lease term, payment schedule, applicable discount rate, and calculates the right-of-use asset value and lease liability at inception.
Right-of-use asset created in FI-AA
CLM triggers the creation of a right-of-use asset in the fixed asset register. Depreciation is scheduled automatically over the lease term and integrated into financial statements.
Accounting entries generated in FI
All IFRS 16 entries, asset recognition, liability recognition, interest expense, depreciation, lease payment allocation, are generated automatically and posted to the general ledger.
Contract modifications handled in real time
Rent revisions, lease extensions, early terminations, any change in RE-FX triggers an automatic recalculation in CLM, updates the liability and asset values, and generates the required remeasurement entries in FI.
Why it matters
The operational case for getting this right.
Diagnostic first. Configuration second.
Approach simple : Here is how we deliver it.
Indicative timeline: 4 to 6 months for process and configuration implementation, excluding historical contract migration. Migration scope is assessed case by case.
1 Diagnostic
We begin by auditing your existing lease portfolio and current accounting treatment. We identify all contracts in scope for IFRS 16, assess data quality in the source systems, and map the gap between your current processes and what CLM requires. No configuration begins until the foundation is understood.
2 Configuration & Integration
SAP CLM and RE-FX are configured against your specific chart of accounts, company codes, cost centres, and lease portfolio characteristics. Integration with FI and FI-AA is designed, built and tested against real contract data. Accounting schema validated against your IFRS 16 policy.
3 Training & Change
Finance, accounting and real estate teams are trained on the solution. We do not hand over a system and leave. We accompany the first period close cycles to ensure the outputs are trusted and the team is confident.
4 Post-Go-Live Support
Ongoing support for contract modifications, regulatory updates, and system evolutions. As IFRS 16 guidance evolves, we ensure your CLM configuration remains aligned.
Ready to automate your IFRS 16 compliance ?
Start with a conversation. We will tell you honestly what you need and whether that is us.
