Best practices for IBM TRIRIGA Implementations – A Leasing Software
Earlier posts focused on the best practices followed by ValuD during upgrades. In this blog series, we highlight the best practices that ValuD advocates for IBM TRIRIGA 10.5.3 – A leasing software implementation.
1. Leasing Software Implementations are More Complex
With lease accounting as its major deliverable, TRIRIGA 10.5.3 implementations require an experienced Real Estate CPA Subject Matter Expert – someone who understands measurement rules, how to classify leases, and calculate schedules – in addition to being an expert on TRIRIGA functionality. ValuD’s team of experienced CPAs – who also know TRIRIGA – can help you navigate the lease accounting implementation process.
Your Accounting group involvement is critical. You will need their expert input on FASB topic 842 and IFRS 16 interpretations and how that affects TRIRIGA. They will also play a larger role than before in maintaining the TRIRIGA system and need to be actively involved in the implementation and clearly understand the segregation of duties between lease administration and accounting.
2. Implementation Methodology – you have options
You can implement TRIRIGA in two different ways:
- Standard TRIRIGA implementation – consisting of Full Lease Administration software solution
- Standalone Leasing software implementations – where the client maintains their legacy lease administration system and implements only the Lease Accounting solution to comply with the new lease accounting regulations.
3. Reporting complexity
With a significant increase in Disclosure Reporting under Topic 842, the OOTB accounting report templates provided by IBM might just not be enough for all your reporting requirements. ValuD provides you with a set of fully functional Accounting Reports during the implementation process in less time than modifying reports.
4. More on Segregation of Duties
Delineation of roles and responsibilities between the Lease Accountant and Lease Administrator (Contract Manager) in TRIRIGA 10.5.3 has helped address a major concern on data accuracy raised by both TRIRIGA clients and the Customer Advisory Board. With this clear demarcation, the Contract Manager can only ‘submit (not activate leases on his own) for accounting review’ to the Lease Accountant and has no editing rights over the financial data. Similarly, the Lease Accountant cannot make any modifications to the Lease Data (except accounting) but can choose to ‘return’ the lease back to the Lease Administrator (in case of errors) and has exclusive rights to activate the lease.
With several new states (Draft Accounting Review, Revision Accounting review etc) being introduced in 10.5.3, ValuD recommends that you focus on understanding the segregation of duties and how the new states affect the data load. Bringing the data into TRIRIGA for the first time should be based on client discussions but as a general rule, we recommend that you bring the entire data in the “Draft Accounting Review” mode so that the Lease Accountant can analyze and edit the Accounting data, generate the schedules and activate the Lease.
Our next blogs in this series will focus on the best practices that you would need to follow in each stage of the implementation life cycle. For more information on ValuD’s IBM TRIRIGA upgrade best practices, watch our webinar.