SAP IFRS Conversion

The legacy "Accounts Approach" creates reporting complexity. At Finpro, we implement SAP's modern "Ledger-Based" approach. We configure the "Leading Ledger (0L)" for VUK (Local GAAP) and a "Non-Leading Ledger" for IFRS. This way, when an invoice is posted, the system records it in both ledgers but automatically writes valuation differences—such as depreciation or severance pay—only to the relevant ledger (Delta Posting). The result: Two distinct, error-free, and real-time balance sheets with a single click.

One of the most challenging requirements of IFRS is generating a Balance Sheet not only at the company level but also by Business Unit, Product Group, or Region (Segment). Finpro activates SAP's "Document Splitting" feature. This feature automatically distributes "unassigned" line items, such as cash or taxes, to the profit centers where the invoice originated. Consequently, you obtain Segment Balance Sheets based on the "Zero Balance" principle without struggling with manual distribution keys at month-end.

No, managing IFRS 16 via Excel constitutes a significant audit risk. With Finpro's SAP-based "Contract & Lease Management" solution, you input all lease contracts into the system. The system automatically calculates and posts the Right-of-Use (ROU) Asset, Lease Liability, Interest Expense, and Exchange Rate Differences throughout the lease term. Your auditors can access contract details with a single click via drill-down functionality.

This process cannot be managed manually. We configure SAP's standard Inflation Accounting cockpit separately for VUK and IFRS rules. The system automatically revalues your non-monetary items (Inventory, Fixed Assets, etc.) using the CPI/PPI index coefficients of the relevant month. Finpro's expertise lies in running this complex cycle (correction coefficients, net monetary position gain/loss) as a "background process" without delaying the month-end closing.

The major source of delay in audits is data validation and reconciliation. In Finpro's IFRS configuration, "Data Validation" rules trigger at the point of entry, blocking erroneous entries from the start. Consequently, the trial balances and footnotes provided to independent auditors are generated directly and transparently from the system. This shortens audit cycles, reduces costs, and enables your finance team to shift their focus from operations to analysis.