The CFO's Guide to Lease Records and Asset Reality

The CFO’s control question

Can finance trace every lease record to the contract, approved inputs, payment evidence and physical assets behind it?

A correct schedule and an accurate asset register are both valuable. The control gap appears when they cannot be reconciled without collecting information from several systems and teams.

Ind AS 116-supporting records

ServiceTiket can maintain configured records and workflows used in Ind AS 116 processes while keeping international group-reporting requirements available for separate assessment.

Finance records can include:

• Lease registers across lessors, entities and locations
• Lease-liability amortisation and payment schedules
• ROU depreciation and lease-expense records
• Asset-level versions and reconciliation where configured

Source data and controlled decisions

The quality of the output depends on complete source records and approved policy inputs.

The review path can retain:

• Agreement, invoice, rental terms, options and amendments
• PR, PO, GRN, serial numbers and acceptance evidence
• Commencement, IBR and other customer-approved inputs
• Approvers, calculation versions and exception history

Payments and changes

A lease does not remain static after commencement. Scheduled payments, invoices, recorded payments and approved changes need to stay connected.

Control points can include:

• Quarterly rentals and first or last broken periods
• Invoice and payment reconciliation
• Modifications, exchanges, extensions and early returns
• Renewal, return, buyout and recovery decisions

Physical-asset evidence

Finance can review the lease obligation while operations maintains the exact asset, location, custodian, condition and field evidence.

Connected evidence can include:

• Serial or ERP number and current location
• GRN, delivery and placement acceptance
• QR or barcode verification, photos and condition
• Movement, return and exception-closure history

A scoped implementation

Implementation begins with the organisation’s legal entities, lease population, policy decisions, data quality, systems and control requirements.

The implementation process can include:

• Workflow, role, form and master-data configuration
• Historical lease and asset-data preparation
• Finance-reviewed test cases and reconciliation
• Integration design, user testing, training and go-live support