Processing in Accounting

Purpose

Contracts in accounting can be divided into three groups:

  • New contracts

  • Contracts changed during the lease term

  • Contracts that actually end at the end of the lease term or are transferred to a follow-up contract

The system posts data automatically in Accounting.

  1. New contracts (NEWL)

    Typical postings:

    For operating leases (contracts in which the lessor capitalizes the fixed assets), the system generates asset acquisition and accrual postings.

    For capital leases (contracts in which the lessor does not capitalize the fixed assets), the system generates accrual postings.

    For loans (not conventional leases), the system generates accrual postings.

  2. Leases changed during the lease term

    Typical postings:

    The original lease continues with a follow-up contract (for example, Base Lease Extension (RESC), Restructuring (RESC)). The system creates a new contract and terminates the old contract.

    For operating leases, the old asset is decapitalized in asset management and a new asset is created with the appropriate values. In addition, any accrual postings that have not been released yet are cleared and then posted again.

    Only accounting postings are made for capital leases and loan contracts.

    Contracts with upgrades.

    See point 1.

    The contract is terminated before the end of the originally defined term (for example, Early Termination with Return (TERM), Early Buyout (BUYO ), Bankruptcy with Return (BANK)).

    For operating leases, the old asset is decapitalized and any accrual postings that have not been released yet are cleared.

  3. Contracts that actually end at the end of the lease term or are transferred to a follow-up contract

    Typical postings:

    Contracts that actually end at the end of the lease term ( Termination with Return (TERM)).

    The asset is cleared automatically in operating leases.

    Contract continues with a follow-up contract (for example, Renewal (RNEW)).

    An asset transfer takes place; accrual postings are recalculated and posted.

Process Flow

  1. SAP Customer Relationship Management (SAP CRM) uses CRM Middleware to transfer the contract data to Lease Accounting in SAP ERP.

    The contracts are classified (operating lease, capital lease, loan) according to various parameters, such as accounting principle, useful life of the asset, and contract term.

  2. The appropriate asset and accrual postings are triggered depending on the result of the classification.