Robotic Test Automation for Lease Accounting

Ensuring the Accuracy of Your Lease Accounting Calculations

One of the biggest challenges with ensuring the accuracy of your lease accounting system is the sheer number of potential use cases that need to be tested. If you do the math, you may find there are over 100 billion different lease accounting combinations that need to be tested when you factor in the various contract terms, lifecycle events, and accounting variables that might be encountered. 

The Lease Accounting Validator determines which of the 100 billion use case scenarios are applicable to customers’ portfolios, and it then performs a series of automated tests to confirm the accuracy of the results.

Two Minute Video

There are Over 100 Billion Combinations

Who Will Regression Test Your System Outputs?

Tame the Complexity with Automated Testing

While most organizations do not have to worry about 100 billion test scenarios, the challenge is knowing which scenarios could apply to any given organization. Trying to test even 1 percent of the possible scenarios, limited only to the lease characteristics most common to an organization, could result in over 1 billion different use cases. Such a large volume would require a small army of accountants to perform regression testing, which ideally should be performed each time your lease accounting software vendor changes its code.

If your software provider doesn’t perform the regression testing automatically then your team will be burdened with this complexity.

Payment Frequency

Does your lease portfolio have payments that occur:

  • Annual
  • Semiannual
  • Quarterly
  • Monthly

Payment Complexity

Does your lease portfolio have variable rents linked to:

  • Inflation (CPI)
  • Financial Index (SOFR, LIBOR)
  • Performance (Sales)
  • Usage (Mileage, Hours)

Lease Components

Does your lease portfolio have contracts with mixes of:

  • Rent
  • Operating expenses (CAMs)
  • Taxes
  • Insurance

Related Expenses

Does your lease portfolio include start or end-of-term fees such as:

  • Initial direct costs
  • Lease incentives
  • Security deposits
  • Asset retirement obligations

End of Term Options

Does your lease portfolio include a mix of contracts with different options for:

  • Renewals
  • Buyouts
  • Terminations
  • Month-to-month

Accounting Policies

Does your lease portfolio include different classifications and exemptions:

  • Operating leases
  • Finance leases
  • Short-term lease
  • Low-value lease

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Lease Accounting Validator

Lease Accounting Validator Brochure
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