Function documentationLeased Assets

 

Leased assets create special accounting requirements for the lessee. During the term of the lease, leased assets remain the property of the lessor or manufacturer. They represent, therefore, a special form of rented asset. Such assets are legally and from a tax perspective the responsibility of the lessor, and are not relevant for assessing the value of the asset portfolio of the lessee. However, in certain countries, you are nonetheless required to capitalize leased assets, depending on the type of financing involved.

Features

Valuation Methods for Leased Assets

The result is that there are two different methods for handling the bookkeeping for leased assets, depending on legal requirements and the conditions of the lease. Depending on the legal terms and the conditions of the lease, leased assets can be capitalized and depreciated (capital lease method) or they can flow into the P&L as periodic rental expenses (operating lease method).

Master Data

You enter all the essential leasing contract information in the asset master record. In addition, you can assign a leasing type in the asset master record. You define the leasing type in Customizing for Asset Accounting. The leasing type contains all the information for the acquisition posting. You can post the acquisition in the display transaction for asset master records.