At one of Turkey's leading telecommunications companies, roughly 50,000 lease contracts were moved onto SAP Real Estate Management and are now managed centrally. In the second phase, the same foundation was extended to meet IFRS 16 requirements.
The client name is withheld at the client’s request.
The extensive operational footprint of one of Turkey's leading telecommunications companies required a very large number of lease contracts, and the financial terms tied to them, to be managed effectively, centrally and sustainably.
In the SAP Real Estate Management project Montag delivered, roughly 50,000 lease contracts were moved into SAP and made manageable centrally. At the end of the six-month first phase, an integrated structure was in place in which contracts, contract terms and related processes are tracked in SAP. In the second phase, this foundation was extended to manage IFRS 16 requirements.
Managing a large physical infrastructure in telecommunications means tracking a very large number of lease agreements for different locations, facilities and operational sites. At this scale, simply storing the contracts is not enough: start and end dates, rental terms, payment schedules, contract changes and financial effects must be managed systematically. Moving a portfolio of roughly 50,000 contracts onto a central, sustainable structure was the project's core goal.
The Montag team designed the processes and system needed to manage the existing lease contracts and their related processes on SAP Real Estate Management. The project delivered:
The most striking aspect of the project was its scale: roughly 50,000 contracts became trackable on SAP Real Estate Management by the end of the six-month project.
The central contract management foundation built in the first phase was extended to meet IFRS 16 requirements. Holding the contracts structurally and centrally in SAP provided the basis for running the IFRS 16 financial processes on the same data foundation:
The solution thus grew from an operational contract management application into an integrated structure that also supports financial reporting and regulatory requirements.
| Business problem | Central management of tens of thousands of lease contracts and their related terms. |
|---|---|
| Solution | Central contract management on SAP Real Estate Management. |
| Scale | Roughly 50,000 contracts. |
| Duration | 6 months (first phase) |
| Second phase | IFRS 16 compliance processes managed in SAP. |
| Outcome | Lease contracts and the related financial processes are managed on a single SAP foundation. |
Roughly 50,000 lease contracts are now tracked centrally on SAP.
Lease contracts were brought under one system; contract terms are managed centrally.
The high-volume contract portfolio moved to a standard structure.
A common data foundation was created for integration with financial processes.
The system became the foundation for implementing IFRS 16 requirements in the second phase.
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