Accounting Domain Reform That Achieves Both Global Standardization and Japan-Specific Requirements — Reform of Fixed Assets, Equipment Investment, and Lease Management Implemented on SAP S/4HANA®

LIXIL has many consolidated subsidiaries in Japan and overseas and has been advancing global standardization of operations and systems using SAP S/4HANA®. At the same time, in the accounting domain, requirements differed by business unit, and initiatives for fixed assets, equipment investment, and lease management had been delayed. Although ABeam Consulting has provided support since 2014, the project has been difficult to drive forward due to its large scope and the complexity of requirements.
In particular, LIXIL needed to address complex Japan-specific accounting and tax requirements while modernizing aging systems in the areas of fixed asset management, equipment investment project-based management, and lease management. In addition, the mandatory application of the new lease accounting standard from April 2027 added further constraints, making reliable implementation within a short timeframe essential.
Given these circumstances, ABeam Consulting, leveraging its experience in implementing FI-AA and SAP Contract and Lease Management for SAP S/4HANA®, began supporting the implementation of these solutions from 2025.

ABeam Consulting has supported numerous global system transformation projects using SAP S/4HANA®. Leveraging this experience and coordinating as needed with SAP S/4HANA® implementation projects at LIXIL’s overseas subsidiaries, ABeam Consulting has promoted the standardization of accounting operations and systems in Japan, including order-to-cash, procure-to-pay, and financial accounting.

In addition, positioning the implementation of SAP Contract and Lease Management for SAP S/4HANA® as a key element of lease accounting reform, ABeam Consulting promoted implementation primarily from Japan. By allocating highly skilled members appropriately and establishing a strong backup structure, ABeam Consulting was able to respond flexibly to issues and requirements unique to Japan, even within a project involving 42 domestic companies. Furthermore, by streamlining processes using SAP Contract and Lease Management for SAP S/4HANA®, including reviewing operations, rules, and documentation, ABeam Consulting concentrated its efforts on addressing client-specific challenges.

Based on extensive experience gained through numerous projects in fixed asset management and equipment investment project-based management, together with more than 10 years of in-depth understanding of LIXIL since 2014, ABeam Consulting conducted high-level Fit-Gap analysis to assess alignment between business requirements and SAP S/4HANA® standard capabilities.
As a result, rather than focusing solely on system enhancements, ABeam Consulting defined business and system requirements that address fundamental management issues through operational efficiency and standardization.

In the lease domain, the use of ABeam Consulting’s templates enabled stable project execution while minimizing recurring issues.
In preparation for the mandatory application of the new lease accounting standard from April 2027, the project is progressing steadily toward system go-live for fixed asset management, equipment investment project-based management, and lease management using FI-AA and SAP Contract and Lease Management for SAP S/4HANA®.
Beyond compliance with the new lease accounting standard, the project is expected to enable automatic calculation of depreciable asset tax declarations and full electronic filing, eliminating Excel- and paper-based operations and reducing the operational burden on business units.

Looking ahead, following go-live, ABeam Consulting will continue to support faster management decision-making and ongoing operational improvement through enhanced use of accounting data and further advancement of business processes.