End-of-Lease Change Processes 

Use

When a lease is concluded, you can decide, together with the customer, on options that are to apply at the end of the lease. You can use an indicator in Customizing to define whether the customer is provided with a new quotation for a particular option at a certain point in time, for example one month before the end of the lease.
Alternatively, you can decide together with the customer that a new lease is incepted automatically and billing continued if the customer does not request a change to the lease in advance or does not return the leased object at the end of the lease.

 

You can execute the following options in the form of change processes in a lease at the end of the lease term:

Change processes with financing character:

●      Renewal

●      Continuation

Change processes without financing character:

●      Purchase of Leased Object

●      Termination Without Return

●      Termination with Return

 

Prerequisites

Master data

Prerequisite for continuation: You have entered financing options in the master data.

Customizing

Prerequisite for renewal: In the financing profile, you have set at least one of the following indicators: Parallel Follow-Up Quotations for EOL Processing or Only Options Agreed on in Advance.

You make these settings in Customizing for Customer Relationship Management, by choosing Financial Services → Leasing → Financing and Object Profile → Define Financing Profiles.