It’s July 2022 which means that the Financial Accounting Standards Board’s Accounting Standards Codification 842, also known as ASC 842, has officially come into play for US private companies. ASC 842 changes the way companies account and report their lease obligations whether they are a lessee or lessor. It brings all leases onto private company balance sheets by creating right of use (ROU) assets and liabilities. This means, operating leases will now be on the balance sheet, and capital leases become finance leases. The main takeaway from this standard coming into effect is understanding the impact on regular operations.

What should companies do if they haven’t implemented ASC 842 yet?

The first step is understanding all your leases. A fleet of vehicles, heavy equipment, global offices with a different lease for each copier – it all adds up. And it’s not just about the initial adoption of the new standard; it’s also about the ongoing process of maintaining compliance. The accounting department needs to have a seat at the table and be in the know when it comes to negotiations and executions to avoid being behind amortizing leases. It’s also important to have a clear idea as to what constitutes a lease. Some contracts for IT data management, cloud services, transportation, and advertising can have lease connotations somewhere in the fine print.

The second step is recognizing the effect to financial statements that implementing lease accounting will have and ensuring that all interested parties are well informed. A 10-year office lease can be a large liability and would require the proper explanation to board members and audit committees. It is beneficial to have all your leases in one place so that your organization can analyze their impact better.

When you should you adopt a Lease Accounting Solution?

Depending on your organization, you might have a small number of leases and so you might be able to handle implementing ASC 842 on your own and perform your lease accounting using spreadsheets and adopting a “business-as-usual” stance. However, as we’ve seen over the past couple of years, spreadsheets are not agile enough to handle the pace of change that is the new “business-as-usual.” From executives to lower-level finance team members, everybody expects the information they need immediately. Legacy applications are too slow.

How much should you be spending on Lease Accounting?

Sadly, there isn’t one specific answer. There are too many variables across industries. It’s not just about monetary cost; there is the time and effort to manage leases on your financial sheets monthly and annually. Use the following chart to estimate for your own company how much lease accounting is currently costing and where savings could be found.

We Can Help

If your current ERP doesn't have sufficient leasing capabilities, we can help you migrate to a much more robust lease accounting solution, like Black Owl Systems. If you are interested in learning more, please contact us.

A fair amount of today’s IT spend goes towards maintaining the software solutions of yesterday. Total cost of ownership (TCO) is a significant factor when considering your platform choice.

• Does the platform beneath your winery system support or hinder your business initiatives and change requirements?
• How much is your current winery system costing you?
• Can you change at pace to meet your business needs?
• What is the true cost to your business of not having platform flexibility?

Why should a winery keep their platform in mind?

With demands for quick turnaround on necessary business changes, your ability to adopt flexibility can significantly impact your success. When your technology isn’t up to speed, you’re constraining your business in a time where maintaining the status quo isn’t going to cut it.

Traditional application suites are proving to be a burden on businesses and come with a variety of challenges. Customizations to these technologies have been a hindrance to implement and an expense to own. They come with not only a monetary cost but the effort to maintain and respond to demands. A SaaS winery solution can change, adapt, and mitigate security risks. The costs of enterprise grade security are built into the solution, further reducing your business costs.

The ideal solution is one that offers an unprecedented level of enterprise grade winery functionality and technologies that extend and enhance the information available to your business users.

WineTrax is a solution designed and built by a winemaker. NuVerge had their own in-house winemaker, working with their product development team and building out wine industry specific applications, functionality, reports, and integrations with the winemaker’s needs in mind. This mindset was brought to every aspect of the WineTrax design and build.

Learn More About WineTrax

Source: I Run a Winery: Why Does the Platform Matter by NuVerge, September 27, 2021

iSP3 Solution Providers Inc. Selected as a Reseller for CAM Performance Plus
Partnership to Enhance Enterprise Asset Management (EAM) for JD Edwards Software

Vancouver, BC, Canada: iSP3 Solution Providers Inc announced today that they have been selected as the exclusive Canadian partner and reseller for the most comprehensive enhancement suite for JD Edwards ERP, CAM Performance Plus by Asset Management Solutions.

With this strategic partnership iSP3 will be providing our resource based and asset intensive customers with the ability to streamline their maintenance activities and design best in class maintenance programs. This comprehensive solution delivers rich new capabilities and improves the user experience for everything maintenance, and more. This includes a simpler and more intuitive work order lifecycle, enhanced PM’s, workforce scheduling, Google like search capabilities for your Item Master, attachment printing for work order packages, mobile applications and much more.

This Oracle Validated Integration solution has been designed in the native JD Edwards toolset for a seamless user experience, without the need for costly integration. Our implementation approach is designed to phase this modular solution into your organization to deliver immediate value, in the shortest amount of time.

“This suite of EAM solutions for EnterpriseOne will improve maintenance efficiency, asset uptime and performance for our asset intensive customers,” said William Liu, Senior Partner. “Effective maintenance management is a real home run for customers in the Energy, Lumber, Construction and Mining industries as well as public sectors with extensive lists of assets. Most importantly, this solution delivers measurable value to our customers, and our value consultants can help our customers build a compelling business case. We have chosen this solution because of the careful attention to details that will bring the greatest operational efficiencies for our clients.”

About iSP3 Solution Providers Inc
With over 20 years in the ERP industry, iSP3 delivers quality consulting services and solutions to the JD Edwards EnterpriseOne, World and Cloud customer base. We are an Oracle award winning partner with deep expertise and Oracle certifications in all JDE Core Applications as well as Technical CNC and Oracle Cloud Infrastructure. Whether you require assistance with implementations, upgrades, migrations, or technical and functional services, our team’s deep knowledge and experience in asset intensive industries and ERP are here for you.

About Asset Management Solutions (AMS)
Asset Management Solutions (AMS) was founded with a primary focus in utilizing technology to provide comprehensive JD Edwards asset and maintenance management solutions to our clients. AMS serves a wide variety of industries, including refineries, mining, construction, utility, energy, manufacturing, agricultural, and pulp and paper.

Learn more about CAM Performance Plus

Contact:
William Liu
Senior Partner, iSP3 Solution Providers Inc.
wliu@isp3.ca | www.isp3.ca

iSP3 was joined by Greg Kautz (CPA, CMA) and Derek Kautz (CPA) Co-Founders of Black Owl Systems to discuss the importance of modernizing your lease accounting systems. The following video highlights from the presentation focus on how modern lease accounting solutions can assist and bring value to organizations as well as looked at today's main challenges.

Modernizing Lease Accounting

How can modern lease accounting solutions assist and bring value to organizations?

Lease Accounting Challenges

Why has accounting become so much more complicated, in particular lease accounting?

If you’d like to explore this topic further via an extended demo of the Black Owl Lease Accounting solution, please contact us.

FOR IMMEDIATE RELEASE: October 28, 2021
William Liu
iSP3 solution providers inc.
wliu@isp3.ca

iSP3 Selected as Canadian Partner for Black Owl Systems Lease Accounting Software
Innovative Solution Based on Strong Accounting Principles for Cloud or On-Premise

Vancouver, BC, Canada: iSP3 solution providers inc. announced today that they have been selected as a Canadian partner for Black Owl Systems’ revolutionary Lease Accounting software. Black Owl Systems is delivering a new approach to lease accounting software which is founded on strong accounting principles and can be utilized with the modern technology of cloud or on-premise.

Typical lease accounting can be quite complex and increase the time and effort required to ensure calculations and disclosures are correct. Black Owl Systems is setting a new benchmark in lease accounting with an easy to use yet comprehensive and complete solution ensuring you can easily manage your leases to be IFRS and US GAAP compliant. This is a far more robust system than other lease accounting solutions as it delivers many benefits that are designed to directly reduce burden of managing leases and increase ROI for companies.

“This partnership will bring great benefit to all of our customers who lease physical assets, no matter what ERP they run,” said William Liu, Senior Partner at iSP3. “As we've seen, the regulations for lessee and lessor accounting are intricate and using manual spreadsheets to create schedules and journal entries overlook many of these important calculations. Black Owl Systems has designed a solution to reduce the risk of incorrect accounting, ensure compliance for reporting in IFRS 16 and ASC 842, as well as a host of other benefits. We look forward to the opportunities that this solution will bring to our customers.”

About iSP3
With over 20 years in the ERP industry, iSP3 solution providers inc. delivers quality consulting services and solutions to the JD Edwards EnterpriseOne, World, and Cloud customer base. We now include Nextworld as a tier-one ERP solution for our clients who would benefit from a no/low-code platform to provide unprecedented agility to their business. Whether you require assistance with implementations, upgrades, migrations, or technical and functional services, our team’s knowledge and experience are here for you.

About Black Owl
Black Owl Systems Inc. is a Canadian company, developing and delivering innovative accounting solutions designed by accountants for accountants. Their system is built to comply with IFRS 16 and ASC 842 standards but follows the methodologies of standard accounting practices. Our business applications are developed in North America using modern cloud-based technologies to ensure delivery of leading global enterprise solutions.

For more information contact wliu@isp3.ca or visit https://www.isp3.ca/lease-accounting/.

Supplier Discount Automation

This process increases savings and optimizes spend. It’s beneficial for those who are making at least a million dollars in vendor payments each year, with half of those payments eligible for a discount. Release 22 helps facilitate and translate significant savings. It maintains the Supplier Catalog by reacting to market conditions as they change with mass updates of base prices and effective dates. The Item Number filter simplifies the supplier catalog search. When creating Purchase Orders, you can automate the capture of basket, order, and volume discounts for efficient and accurate price calculations. The role-based pages provide a dashboard to focus on order activity and PO Approval Mobile Applications are handy for approving or rejecting purchase orders. You can also review order history and associated discounts to optimize future purchasing decisions.

More Efficient Requirements Planning

This helps with streamlining your CRP, MPS, DRP, or MRP processes. The Visual Bill of Material and Where-Used diagram allow for better data accuracy while the Copy Bill of Material by Branch makes it easier to add new manufacturing facilities. Capacity and Production Planning is automated and simplified. You can freeze work orders to eliminate unwanted action recommendations. Planning Summary provides planners and buyers visibility to urgent action messages and the Planning Console provides an interactive, supply/demand interface reducing time to action.

Automating Processes with Orchestrator

Orchestrator is all about rethinking how you do business. It optimizes human work, automates tedious tasks, and builds value. It all starts with creating a process, which you can record and capture the steps of the process by simply using the application. Orchestrator is for both technical and nontechnical users and when deploying the process, it allows the creation, sharing, automation, and securing of user defined objects. When you launch a process, the Scheduler provides an easy user interface that defines and activates scheduled automations. The simplest way to alert and act are via One View Watchlists and you can automate messages and workflows. There is still human interaction with orchestrations as you monitor processes and debug exceptions as well as build error-handling and notifications into the process.

Extending the User Experience Without Customizations

To optimize productivity, JD Edwards is trying to limit the need for customizations. Reducing customizations empowers you to adapt JD Edwards to your needs while at the same time not being bothered with the overhead created by doing customizations. With Release 22, you can implement what you need without having to write code or worry about how a customization carries forward with application and tools updates. E1 Page provides access to the most used tasks and E1 Search removes the need to access multiple applications. When looking at EnterpriseOne from a UI perspective, Form Personalization enables the remove fields for a streamlined application. Utilizing Form Extensibility facilitates the capture of additional information while Query retrieves data for a specific user or process. In order to meet market and industry needs, Logic Extension can help provide new business rules with specific requirements.

Transform to Continuous Adoption

With all the cumulative values and feature functionality enhancements, it can come across as a large effort for customers to get from where they currently are to be able to take advantage of the innovation and get value out of JD Edwards. However, this is where continuous adoption comes in. Customers that have 24/7 businesses can't afford for their users to be kicked off the system every time you have to deploy a package for EnterpriseOne. Continuous adoption eliminates that need. Coupled with continuous innovation and the reduction of customizations, customers can get to Release 22 quite easily. A Simplified Upgrade to 9.2 reduces the time and effort of a past upgrade and One Click provides a code current target. Update Manager streamlines patch evaluation, impact, insight, and automation. Object Usage Tracking monitors utilization. Compare Tools accelerates retrofitting while Assertion Framework reduces testing efforts. Most importantly, Zero Downtime deploys innovation without impacting availability.

If you’re interested to discover more ways that you can take advantage of the latest Release 22 updates, please don’t hesitate to contact us.

Why The Name Change?

There is a 77% adoption rate for EnterpriseOne 9.2 and so Release 22 is more representative of the modernization that JD Edwards continues to deliver to customers. It’s to provide customers with a greater awareness of the 700+ product features delivered in EnterpriseOne to support their digital transformation journeys. It’s reminiscent to how car manufacturers unveil their latest model; each year, JD Edwards will be unveiling the next release, labelled as the subsequent year. Release 22 is good for the year 2022. Next years' update will be Release 23 for the year 2023.

Release 22 represents the continuous innovation and code line of release 9.2. It encapsulates the Application Updates (Apps Update 6), the Tools 9.2.6 Updates (Tools 9.2.6.1, Tools 9.2.6.2 etc), as well as Trial Edition and One Click provision.

Release 22 Is Digital ERP

Digital ERP is where you see things like Orchestrator helping you connect your system, enabling you to do things like Mobile or Internet of Things, it enhances your collaboration, helps you automate and validate your business processes, helps you eliminate manual tasks, and takes advantage of robotic process automation as well as cloud. It’s all about automation, optimization, and transformation. With Release 22 you’re increasing the value of your software investment, with enhanced visibility and actionable insights while at the same time creating improved customer engagement and enabling employees to make faster, more intelligent business decisions. You’re enabling your organization to become connected, customer centric teams with access to real-time digital intelligence and lowering your total cost of ownership.

Make The Move To 64-Bit

If you are already on 9.2, you don’t really need to do anything except to continue leveraging the existing update processes. Release 22 is cumulative and includes all new apps and tools features for EnterpriseOne. If you are on an older release of 9.2, or have only applied tools updates, the process of updating 9.2 has not changed with the announcement of Release 22. Updating just the tools release is possible however it’s recommended that customers update both apps and tools for Release 22. New application and tools features continue to be delivered as ESUs and maintenance packs. It’s important to note that this name change does not impact Oracle's Lifetime Support Policy for EnterpriseOne 9.2 so you are still covered until at least 2032. Apps Update 6 is supported with tools 9.2.5 but it's highly recommended that you make the move to 64-bit and Tools Update 6.

If on an older release of JD Edwards, you need to be on 64-bit. We’d be happy to set up a call to go over your plans and offer advice on how to set yourself up to take advantage of this opportunity and secure your JD Edwards investment by exploring modernization.

If you’d like to learn more about Release 22, make sure to check out LearnJDE.com.