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ATEA: “Created solution is intuitive – user friendly and allows to manage lease contract with minimum efforts”

Created solution is fully covering ATEA Baltics needs for adjusted IFRS 16 requirements and will be used as a basis for ATEA Nordic countries without major modifications

Summary:

  • Atea – is the largest IT solution and services provider in Baltic region.
  • One of project goals – to adopt ATEA Baltic currently used ERP for accounting lease agreements as requested in IFRS 16.
  • Advanced technical architecture will allow to expand solution with additional features in future, if there will be such.

About ATEA

ATEA Areas of activity: computer software and hardware, IT services, telecommunications. Atea – is the largest IT solution and services provider in Baltic region. This company creates value for its customers by providing products, services and solutions for IT infrastructure, applications and security of objects and systems. Atea has over 700 employees working in the Baltic region and the annual turnover in 2017 reached 115 million Euro. Atea Group is a leading IT infrastructure solution provider in Nordic and Baltic regions.  Atea shares are quoted on the Oslo Stock Exchange and the Group’s turnover is around 3 billion Euro. Number of employees in Baltic region: 700,  turnover (exc. VAT) 2016 50 mln. €.

Project goals

  • To adopt ATEA Baltic currently used ERP for accounting lease agreements as requested in IFRS 16.
  • To build flexible solution, which will be used not only in ATEA Baltic, but also in ATEA Nordic countries. This way ensuring common approach and solution usage in all companies of ATEA Group.
  • To have ready to use solution before officially requested starting day (1st January 2019), thus leaving enough time for transitional period activities.

Why OIXIO?

  • OIXIO (prev. Columbus Lithuania) and ATEA Group are successfully cooperating in IT projects for more than 10 years, and thus OIXIO has gained reliable partner’s name.
  • OIXIO has a strong background of lease contracts management solutions (with certificated OIXIO Leasing | Loans (prev. Columbus Leasing) product) on lessor side and could re-use know-how for building lease management solution for lessees.

Solution description

OIXIO solution – IFRS 16 module, which can be incorporated into ERP of lessee companies to meet IFRS 16 requirements.

The main idea of OIXIO IFRS 16 (prev. Columbus IFRS 16) solution is to calculate present value of future lease payments and calculate lease schedules, where contractual monthly payments are split into two parts – present value and interests’ amount. It also includes significant number of features and enhancements that are required by lessees to support lease agreement accounting according to IFRS, starting with its signing, schedule calculation and up to its natural ending or termination.

OIXIO IFRS 16 solution is based on Microsoft Dynamics NAV (now Microsoft D365 Business Central) and tightly integrated with general ledger, fixed assets and other Microsoft Dynamics NAV modules.

The core functionality includes:

  • Present value calculation using period payment, lease period, interest rate and various other additional parameters.
  • Lease schedule calculation (monthly, quarterly, half year, annual).
  • RoU Asset Management.
  • Contract amendment management.
  • Contract ending activities management.
  • Lease agreement accounting operations.
  • Contracts status flow.

Project results

  • Project results were delivered before the final term agreed in contract, thus leaving reasonable time for GO-Live preparations and more options for transition period.
  • Created solution is fully covering ATEA Baltics needs for adjusted IFRS 16 requirements and will be used as a basis for ATEA Nordic countries without major modifications.
  • OIXIO IFRS 16 solution background will be used in upcoming another big ATEA project – Operating Sub-Lease.
  • Created solution is intuitive – user friendly and allows to manage lease contract with minimum efforts, in the same time ensuring avoidance of possible mistakes.
  • Advanced technical architecture will allow to expand solution with additional features in future, if there will be such.

ATEA CFO Aleksandr Novik experience

Our main needs was: to build flexible solution, which will be used not only in ATEA Baltic, but also in ATEA Nordic countries. This way ensuring common approach and solution usage in all companies of ATEA Group.

Created solution is intuitive – user friendly and allows to manage lease contract with minimum efforts, in the same time ensuring avoidance of possible mistakes.

OIXIO (prev. Columbus Lithuania) Senior Presale Consultant Edgaras suggested for this project OIXIO Lease (prev. Columbus Lease) team and clear project implementation plan, after initial meetings (where was presented solution prototype) OIXIO Lease team (Aušra, Romas, Egidijus) looks very professional and able to do such project. We are very satisfied that selected this team for our project.

OIXIO experience in Lease area was very important for us to make solution to do project with OIXIO.

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